Global Powers of
Consumer Products 2013
Engaging the connected
consumer
Global Powers of the Consumer Products Industry 2013	 1
Global economic outlook	 2
Global trends affecting the industry in...
Global Powers of the Consumer Products Industry 2013
Deloitte Touche Tohmatsu Limited (DTTL) is
pleased to present the 6th...
Each time it appears that the global economy is
about to accelerate, something happens to throw
a wrench into the wheels o...
Industrial production was up a relatively modest
amount in 2012. This meant that China’s economy
became weaker than had be...
•	Second, China’s demographics are changing
rapidly. Labor force growth is slowing. This will
result in slower economic gr...
Finally, a very positive aspect to the U.S. outlook
concerns energy. Due to a massive increase in
production of natural ga...
In India, growth declined in 2012 as well. Yet unlike
in Brazil, India’s central bank has remained focused
on inflation, e...
Global trends affecting the industry in 2013
The digitally enabled consumer
The past few years have witnessed a revolution...
Online consumer-to-consumer word-of-mouth
and online consumer reviews are playing an
increasingly important role in the co...
The omni-channel strategy of each may differ based
on such elements as individual market strategy,
geographic coverage, co...
2.	 Demand synchronization. Many consumer
products companies focus on the front-end,
consumer-facing aspect of their busin...
Rebound in consumer products industry continued in 2011
amid uncertain global economy
During fiscal 2011, the global econo...
Top 250 consumer products companies
Sales
Rank
FY11
Company Name Country of
Origin
Region Primary Product Sector FY11
Net ...
Top 250 consumer products companies
Sales
Rank
FY11
Company Name Country of
Origin
Region Primary Product Sector FY11
Net ...
Top 250 consumer products companies
Sales
Rank
FY11
Company Name Country of
Origin
Region Primary Product Sector FY11
Net ...
Top 250 consumer products companies
Sales
Rank
FY11
Company Name Country of
Origin
Region Primary Product Sector FY11
Net ...
Top 250 consumer products companies
Sales
Rank
FY11
Company Name Country of
Origin
Region Primary Product Sector FY11
Net ...
Top 250 consumer products companies
Sales
Rank
FY11
Company Name Country of
Origin
Region Primary Product Sector FY11
Net ...
Top 250 consumer products companies
Sales
Rank
FY11
Company Name Country of
Origin
Region Primary Product Sector FY11
Net ...
Top 250 consumer products companies
Sales
Rank
FY11
Company Name Country of
Origin
Region Primary Product Sector FY11
Net ...
Top 250 consumer products companies
Sales
Rank
FY11
Company Name Country of
Origin
Region Primary Product Sector FY11
Net ...
Top 250 consumer products companies alphabetical listing
AB Electrolux 47
Acer Incorporated 46
Activision Blizzard, Inc. 1...
Global top 10 consumer products companies, 2011
Source: Published company data
* Top 10 and Top 250 sales growth figures a...
Global Powers of the Consumer Products
Industry geographical analysis
For purposes of geographical analysis, companies
are...
Excluding Japan, the Asia/Pacific region produced
above average growth of 9.9 percent in 2011. From
2006-2011, sales incre...
Top consumer products companies by region
Among Europe’s top 10 consumer product
companies, Nestlé maintained its first pl...
Fourth-ranked Kraft Foods, Inc. (now Mondelēz
International) will not likely maintain its position
in 2012 after the spino...
As a result, JBS overtook FEMSA, which became
the region’s second-largest consumer products
company. In 2009, the U.S. arm...
Global Powers of the Consumer Products
Industry product sector analysis
For analytical purposes, the Top 250 companies hav...
Food, drink  tobacco: performance by subsector, 2011
Number of
companies
Average
size
(US$mil)
FY11
net sales
growth*
FY11...
Global Powers of Consumer Products 2013
Global Powers of Consumer Products 2013
Global Powers of Consumer Products 2013
Global Powers of Consumer Products 2013
Global Powers of Consumer Products 2013
Global Powers of Consumer Products 2013
Global Powers of Consumer Products 2013
Global Powers of Consumer Products 2013
Global Powers of Consumer Products 2013
Global Powers of Consumer Products 2013
Global Powers of Consumer Products 2013
Global Powers of Consumer Products 2013
Global Powers of Consumer Products 2013
Global Powers of Consumer Products 2013
Global Powers of Consumer Products 2013
Global Powers of Consumer Products 2013
Global Powers of Consumer Products 2013
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Global Powers of Consumer Products 2013
Engaging the connected customer

by Deloitte, 2013

The opportunity for consumer products companies to manage their brands online, engage with consumers at an individual level, and drive sales through digital channels is significant. The question is how to do it well. Take a look at this year's report to see which consumer goods companies are on the Top 250 list. Then keep reading to see what approaches the industry is likely to take to engage this new, digitally empowered consumer.
Find out which companies are where on this year's Top 250 list by downloading the complete report.

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Global Powers of Consumer Products 2013

  1. 1. Global Powers of Consumer Products 2013 Engaging the connected consumer
  2. 2. Global Powers of the Consumer Products Industry 2013 1 Global economic outlook 2 Global trends affecting the industry in 2013 7 Top 250 highlights 11 The changing face of the consumer products 36 industry, 2006-2011 Q ratio analysis 39 Study methodology and data sources 41 Contacts 42 Contents
  3. 3. Global Powers of the Consumer Products Industry 2013 Deloitte Touche Tohmatsu Limited (DTTL) is pleased to present the 6th annual Global Powers of Consumer Products. This report identifies the 250 largest consumer products companies around the world based on publicly available data for the fiscal year 2011 (encompassing companies’ fiscal years ended through June 2012). Deloitte published the first Global Powers report for the consumer products industry six years ago, which covered the 2006 fiscal period. This year’s report, in addition to analyzing the industry’s performance in 2011, will look back over the intervening years at the changing landscape of the consumer products industry and the history behind some of its largest companies. The report also provides an outlook for the global economy, an analysis of market capitalization in the industry, and an assessment of the increasing impact that digitally empowered consumers are having on the industry. Global Powers of Consumer Products 2013 1
  4. 4. Each time it appears that the global economy is about to accelerate, something happens to throw a wrench into the wheels of growth. In 2012, that wrench was the crisis in the Eurozone. With much of Europe in recession, European demand for imported goods declined, thereby having a negative impact on many of the world’s leading economies. It is often forgotten that the EU remains the world’s largest economy, indeed larger than the U.S. and of great importance to global commerce. In 2012, we saw the economies of the U.S., China, Japan, India, and Brazil slow down as the long arm of the European crisis reached across the globe. Moreover, the slowdown in these critical economies influenced economic performance in their neighborhoods. For example, many economies in East Asia were negatively influenced by the slowdown in China. Observers who speak of the end of globalization are clearly wrong. Those who believe that the fate of emerging economies is no longer tied to that of the developed economies are also incorrect. Thus, what happens in Europe in the coming year will likely have a significant impact on the rest of the world. The good news is that there is light at the end of the tunnel. Europe is likely to recover modestly in 2013, thereby having a positive impact on its trading partners. Moreover, growth is likely to continue at a decent pace in the U.S., China is likely to rebound from its relatively slow growth of 2012, and Japan is set to embark on a new policy that could bear significant fruit. Western Europe As of this writing, much of Western Europe is in recession. This results from several factors. First, nearly every country on the continent is cutting its fiscal deficit through tax increases and spending reductions. This has a negative impact on economic activity. Second, the fear that the Eurozone will fail led to a perception of currency risk within the Eurozone. This means that lenders require a risk premium in order to provide credit in countries perceived at risk. These include Spain, Portugal, Italy, and Greece. The result is a decline in credit market activity in these countries. Third, the EU has compelled banks to recapitalize through reductions in lending and the sale of assets. Again, the impact is to discourage private credit market activity. Finally, the huge uncertainty about the economic future of Europe has led businesses to curtail capital spending. Meanwhile, negotiations continue on the best path forward for the Eurozone. There is general agreement that failure would entail huge and unacceptable costs in the form of a severe economic downturn. Thus, the Eurozone must be fixed. But how? The consensus is that the Eurozone requires three forms of integration to succeed. First, there needs to be a banking union with a central authority to supervise and recapitalize banks. Negotiations have been under way among EU members to achieve this goal. The EU leadership hopes to achieve a banking union in 2013. Second, some mechanism will be needed to assure sovereign debt repayment that is not overly onerous for member countries. Currently, efforts at fiscal consolidation are backfiring in that they are leading to further suppression of economic activity, thus leading to reduced tax revenue and still large fiscal deficits. If Eurozone debt could be consolidated, shared, or replaced by Eurobonds, repayment would be far easier – especially if a dedicated stream of revenue could be secured to fund debt servicing. However, opponents fear that, unless there is a central authority with the power to enforce fiscal probity, such debt consolidation would be a bottomless pit. Finally, some form of fiscal and political union will probably be needed, making the Eurozone more like a single national entity rather than simply a fragmented monetary union. The problem is that such a move is politically difficult. Such nation building usually entails decades or even centuries to evolve. Yet Europe has a few years at most to achieve this goal before the whole enterprise unravels. What is the alternative to success? For the time being, the alternative is to simply muddle along from one crisis to another, with slow economic growth and continued economic uncertainty. Yet such a situation cannot last indefinitely. Failure to grow could ultimately lead voters to reject political parties that favor the continuation of the Eurozone. In the long-run, failure is the only real alternative to further integration. Global economic outlook The economic situation for consumer products companies 2
  5. 5. Industrial production was up a relatively modest amount in 2012. This meant that China’s economy became weaker than had been expected. The worry was that the much anticipated soft landing would turn into a hard landing. Fortunately, this didn’t happen. To deal with the slowdown in economic activity, the government took a variety of actions. The central bank cut the benchmark interest rate and reduced banks’ required reserves, thereby boosting bank lending. In addition, the government increased public investment in infrastructure. The result of these measures was positive. Bank lending increased, although not as much as had been hoped. The rise in credit market activity was very likely due to the cuts in interest rates and the reduction in banks’ required reserves. Indeed the broad money supply accelerated as well. The question now is where policymakers will go from here. With a change of leadership having taken place in late 2012 and early 2013, major decisions are now awaited that will have both short- and long-term consequences. Still, most analysts expect better growth in 2013 than in 2012. Longer term, China faces some serious challenges: • First, too much of China’s economic activity has been investment in fixed assets such as factories, shopping centers, apartment complexes, office buildings, and highways. This accounts for 48 percent of GDP. Much investment has had negative returns, resulting in large losses for state-run banks. Such investment fails to boost growth and represents a serious imbalance in the economy. Normal, sustainable growth will come from shifting resources away from investment and toward consumer spending. To accomplish this goal, China will have to privatize state-run banks and companies, liberalize credit markets, allow more currency appreciation, allow further increases in labor compensation, and provide a greater safety net in order to discourage high saving. Notably, there are some positive things happening in Europe today. First, the value of the euro has fallen significantly in the past few years, leading to increased competitiveness on the part of European exports. In addition, wage restraints combined with productivity improvements in Southern Europe has helped to restore some of the lost competitiveness that was at the heart of the crisis in the first place. Second, the European Central Bank has promised to undertake unlimited purchases of sovereign debt from countries that submit to conditional bailouts from Europe’s new bailout facility. Just the existence of this promise, which has not yet been implemented, has been sufficient to significantly lower sovereign bond yields for such countries as Spain and Italy. The ECB program thus has drastically reduced the risk of imminent failure, thereby buying time for Europe to engage in longer-term solutions. Moreover, the ECB program has led to a decline in risk spreads (although they remain high), an end to capital flight from Southern Europe, a stabilization of bank deposits, and a notable recovery in business confidence. Nevertheless, many problems remain. Political troubles in Spain, Italy, and Greece periodically threaten to unravel the progress that has been made. Austerity in these countries leads to recession, declining government revenue, and worsened deficits. It seems to be a self-defeating circle. Thus, a combination of Europe-wide reforms as well as national reforms (such as labor market liberalization) will be needed to bring these countries out of their doldrums. China By late 2012, China’s economy appeared to be turning the corner following a rough year of decelerating growth. Indeed in 2012 the Chinese economy grew 7.8 percent, the slowest rate of growth since 1999. The main problem was exports, with Europe as the main culprit. By mid-2012, exports to the EU were down 12.7 percent from a year earlier. Chinese imports were down as well, partly due to declining commodity prices, but also reflecting weakening demand in China. Global Powers of Consumer Products 2013 3
  6. 6. • Second, China’s demographics are changing rapidly. Labor force growth is slowing. This will result in slower economic growth. It will also create shortage of labor, thus boosting wages. Indeed this is already happening. The result is that China’s vast pool of cheap labor is dwindling. China’s cost advantage for global manufacturers is declining. In fact, the wage differential with Mexico for manufacturing workers has nearly disappeared. Consequently, many manufacturers are shifting export oriented production out of China and into other countries such as Mexico and Vietnam. • Third, China’s next phase of growth will require better human capital, more efficient capital markets, and freer flow of information. These attributes will require economic and political reforms that will challenge the privileges of China’s elite. As such, it will be politically difficult. United States As of this writing (mid-March, 2013), negotiations are under way to avoid a shut-down of the Federal government. Periodic crises involving budget negotiations have become a common feature of U.S. governance lately. The last crisis, the so-called “fiscal cliff,” was averted at the last minute, but the resolution did involve an increase in the payroll tax. The next crisis, the “sequestration,” was unresolved and automatic spending cuts went into effect in early March. Despite these episodes of fiscal contraction, the economy appears to be on a positive path. Assuming that nothing any worse takes place, here is a view of how the U.S. economy is likely to perform in 2013 and beyond. The economy will probably grow a bit faster in 2013 than it did in 2012. U.S. consumer spending continues to increase despite the payroll tax increase, and the housing market is showing signs of significant strength. Consumers have experienced several positive factors lately. Among these are a substantially reduced level of debt and debt service payments, thereby significantly improving consumer cash flow; increased wealth through good performance of the equity market; accelerating employment growth and steady, if very modest, income growth; and finally, much increased confidence as measured by the leading indices of consumer confidence. All of this conspired to create modest growth of consumer spending, especially spending on automobiles. In addition, the housing market has gone from severe negative influence on economic growth to modest positive influence. Activity in the housing market has turned around, although it remains far below the levels reached during the last economic expansion. Home prices have risen, construction has accelerated, and turnover among new and existing homes has increased – all creating the conditions for more spending on things related to the home. Of course 2012 saw significant negative factors as well. The recession in Europe led to a decline in U.S. exports to Europe and, consequently, a sharp slowdown in the growth of industrial output. Moreover, concerns about Europe and uncertainty about its future caused U.S. companies to cut back on capital spending. The result was a slowdown in the growth of economic activity in mid-2012 and, indeed, renewed fears of a double dip recession. Yet it appears as of this writing that the economy is doing better, especially as a European recovery is expected. Industrial production has started to recover and there are indications that business spending on capital goods is about to increase as well. It seems likely that 2013 will be a moderately good year for the U.S. economy. Growth should pick up, inflation should remain subdued, and the policy environment might even be benign. However, what about the longer term? What can consumer product companies expect of the U.S. economic environment? 4
  7. 7. Finally, a very positive aspect to the U.S. outlook concerns energy. Due to a massive increase in production of natural gas and oil through new technologies, the U.S. is expected to become the world’s largest producer of hydrocarbons by the end of the decade, and will be a net exporter of energy. This will have several implications. First, low energy prices will boost U.S. manufacturing competitiveness. Second, there will be a sizable improvement in the trade balance. Third, investment in energy will boost employment significantly. Finally, the switch from coal to natural gas will significantly reduce carbon emissions. Japan Japan’s economy is on the verge of something new. After two decades of sluggish growth and declining prices, it appears that the country is about to embark on a new policy designed to boost growth and end deflation. In late 2012, Shinzo Abe and his Liberal Democratic Party (LDP) were returned to power with a promise to dramatically change economic policy. Most important is the change in monetary policy. Under pressure following the election, the Bank of Japan announced that it will boost its inflation target from 1.0 percent to 2.0 percent. In addition, it will engage in unlimited asset purchases until it meets its target. More importantly, Prime Minister Abe has appointed a new leadership to the Bank which is intent on ending two decades of deflation. In anticipation of this policy, the yen has fallen sharply, thereby boosting the competitiveness of Japanese exports. In addition, Japanese equity prices have risen, reflecting increased confidence that the economy will turn around. The new government has also pledged to engage in significant fiscal stimulus in order to boost economic growth. This is despite the fact that Japan has a very high level of government debt. The new thinking is that the debt/GDP ratio has risen so high largely due to slow growth combined with deflation. The immediate goal is to boost growth and create inflation rather than worry about the absolute level of debt. First, it is interesting that growth in 2012 came largely from consumers rather than exporters. It is interesting because this is not how the recovery began in 2009 and is not what one should expect going forward. Consumer spending remains an unusually and probably unsustainably high share of GDP following the debt-fueled boom of the last decade. Now, as consumers continue to deleverage, and as banks continue their effort to restore healthy balance sheets, it seems unlikely that consumer spending can again grow as fast as it did in recent years. Rather, consumer spending is likely to decline as a share of GDP while exports and business investment boost their share. The stage is already set. U.S. manufacturers are already more competitive due to a declining dollar, declining relative energy prices, and improved labor and productivity. Moreover, U.S. companies that sell or distribute consumer goods and services now recognize that their future growth depends on going global. They are increasingly focused on emerging markets, and not simply the BRICs, as these markets are expected to account for a disproportionate share of global growth in the coming decade. Second, much has been said and written about the continued skewing of income distribution in the U.S. It continues apace and higher taxes on the wealthy will do little to offset this trend. The causes are many, but an imbalance in the labor market between the skills demanded and those supplied is the principal culprit. A shortage of skilled labor is boosting compensation for the highly-educated while a surplus of unskilled workers is suppressing compensation of everyone else. The result is hugely important for retailers and their suppliers. We are already witnessing a bifurcation of the consumer market, with upper end sellers focused on offering clearly differentiated, high quality goods in the context of a superior customer experience; while other sellers focus on offering the lowest price. Global Powers of Consumer Products 2013 5
  8. 8. In India, growth declined in 2012 as well. Yet unlike in Brazil, India’s central bank has remained focused on inflation, even at the cost of delaying economic recovery. Much to the chagrin of the government and many businesses, the central bank has kept the benchmark interest rate relatively high, awaiting a drop in inflation. Meanwhile, the economy suffered in 2012 from the impact of a global slowdown as well as the effect of weak business confidence. In order to restore confidence, and set the stage for faster growth in the future, the government proposed a serious of major reforms aimed at boosting productivity. Among these was liberalization of foreign investment in retailing. As of this writing, it is not clear how successful the government will be in implementing its reform agenda. Elections must take place no later than 2014, and they may help to clarify the direction of policy. In Russia, the economy continues to grow modestly, but high inflation led the central bank to raise interest rates. External weakness has been offset by strong domestic demand, but higher interest rates may hurt domestically driven growth – especially business investment and interest sensitive consumer spending. In addition, government incentives for consumer spending have expired as the government seeks to reduce its deficit. Thus the outlook for economic growth is modest at best. Despite the weakness in the BRIC economies, some parts of the world have managed to grow strongly. These include the Andean countries of South America, much of sub-Saharan Africa, and some of the countries of Southeast Asia including Indonesia and the Philippines. As the global economy ultimately recovers, these regions stand to benefit. Finally, the new government has pledged to engage in free trade negotiations with the U.S. and other Asian nations. Most trade barriers involve regulatory obstacles rather than high tariffs. As such, Abe’s commitment to freer trade is seen by some as a commitment to liberalizing the domestic market in Japan. For sellers of consumer products, the current economic situation in Japan suggests continued weak sales growth and declining prices. Even with changes to economic policy, it will take time for them to work their way through to consumer behavior. Thus, companies should not expect much strength of demand in 2013. Even with economic reforms, there remain significant longer-term challenges including demographics and serious foreign competition. Yet Japan remains a very affluent society. For companies looking to tap into that affluence, Japan will remain an attractive market even if growth is slow. Emerging markets The slowdown in the global economy has taken a toll on many, but not all, emerging markets. In Brazil, the slowdown in exports to Europe and China combined with the lagged effect of monetary policy tightening led to a substantial slowdown in growth in 2011 and 2012. To combat this, Brazil’s central bank began a process of aggressive interest rate cuts starting in late 2011 and continuing through the autumn of 2012. In all, the benchmark interest rate was cut by more than 500 basis points, resulting in the lowest rate ever recorded. In addition, the government began a process of fiscal stimulus in 2012 which entailed tax cuts and spending increases. The result is expected to be a modest pickup in growth in 2013. The only problem is that this stimulatory policy was implemented even as inflation remained higher than desired. Thus, by late 2012, the central bank decided to stabilize interest rates and wait for inflation to decelerate before implementing further stimulus. In addition, the radical reduction in the benchmark rate helped to keep the currency from rising too far, thus reducing the risk that manufactured exports would become less competitive. As for Brazil’s consumer market, it remains reasonably healthy. The biggest risk comes from a relatively high level of consumer debt. 6
  9. 9. Global trends affecting the industry in 2013 The digitally enabled consumer The past few years have witnessed a revolutionary change in the way technology has permeated everyday life, providing access to information, connecting people with their personal networks, and enabling them to buy products or services. The exponential growth of smartphones and tablet users (46% and 98% respectively from 2011-2013), the rise of social media, and the need to be connected at all times are only a few signs of the major digital revolution we are currently experiencing. Moreover, this digital revolution is not limited to developed markets—countries typically referred to as ‘emerging’ markets are experiencing very similar trends. For example, among the high-growth BRIC markets, China is predominant in smartphone penetration, with two-thirds of subscribers using a smartphone (see chart below). Other BRIC countries like Brazil and Russia have a smartphone penetration of about one-third. Over all, the BRIC smartphone market is expected to grow by a spectacular 72% CAGR through 2015.i The impact of this digital growth on consumer and shopper behavior cannot be underestimated. It affects the way consumers interact with brands, how they research products, purchase via multiple channels, and how they receive post-purchase customer service. The nature of this consumer interaction with brands ranges from engaging discussions via social media to purchasing products online via e-Commerce platforms. This trend is also being driven by traditional ‘brick and mortar’ retailers, who use digital as a new channel to reach consumers, as well as by the exponential growth of pure play online retailers. Amazon, for example, has been experiencing an average revenue growth of 30%+ annually for the past 10 years.ii • Nearly half (48%) of all U.S. consumers already own a smartphone, and that number is rising fast. Tablet ownership doubled in the US to 19% in 2012 (Source: Forrester Research). • Roughly 58% of consumers who own a smartphone have used it for store-related shopping. (Source: Dawn of Mobile Influence, Deloitte Research) 36% 44% 21% 37% 51% 11% 10% 80% 9% 66% 25% 9% Smartphone Multimedia Phone Feature Phone Read as: As of the first half of 2012, 36 percent of mobile subscribers in Brazil owned a smartphone. Source: Neilsen Brazil Mobile ownership in the BRIC markets by type of device Among mobile subscribers aged 16+ first half 2012 Russia India China i “Smartphones: Still Room to Grow in Emerging Countries” Nielsen newswire,18 January 2013 ii Source: Wiki invest: http://bit.ly/XCCuZm Global Powers of Consumer Products 2013 7
  10. 10. Online consumer-to-consumer word-of-mouth and online consumer reviews are playing an increasingly important role in the consumers’ path to purchase, with some 69% of global consumers being influenced by online reviews when deciding what product to purchase.iii In addition, a recent Deloitte UK study showed that one in four people research products and services online on a weekly basis before making a purchase.iv At the same time, according to Forrester Research, 50% of online retailers use customer reviews on their sites. The aforementioned technological advancements and consumer behavioral changes pose significant challenges—and opportunities—for consumer products companies and brand owners when it comes to deepening the relationship with the consumer. In the coming months it is likely that leading consumer products companies will continue to connect with consumers in one or more of the ways described below. Learning from retail Retailers continue to be laser-focused on developing consistent omni-channel strategies and providing personalized customer experience. Many already use data analytics to dynamically adjust pricing across channels and to segment customers based on their individual preferences, as opposed to having a blanket customer segmentation scheme. Some global retailers have been adjusting operating models in order to meet changing consumer needs, for example, offering consumers the option of ordering online and picking up the product in their local store while providing full visibility of inventory and in-store product availability. Such personalized marketing campaigns and promotions based on individual shopper profiles —once a competitive advantage for leading retailers —are rapidly becoming the new Consumer Products industry standard and are increasingly expected by consumers around the globe. Managing brand ‘health’ online Unlike traditional media, in digital media brand owners do not control their brand messaging, as every consumer now has the ability to influence other consumers’ perceptions of a brand. Given the need to keep up with and participate in these online exchanges, consumer products companies are establishing teams within their organizations to monitor online references and discussions about their brands, minimize ‘damage’ from negative publicity, and respond to consumers in real time. The selection and training of these teams can play a catalytic role in the brand owner’s ability to effectively engage, attract and retain consumers. Such teams must be skillful in several areas, including marketing (so that the consumer interaction does not dilute the brands they represent) and legal (so that all communications are in line with the brand owner’s legal guidelines). At the same time they must be sensitive to the local culture so as not to alienate consumers. Consumer products companies are also proactively establishing communities around consumers who have similar needs or interests, and while this is not a new trend, the success of these communities increasingly relies on the ability to add value for the consumer. Online communities of parents with young children, for example, have been more successful when they provide relevant, quality information on child development and involve specialists who address the parents’ health and dietary concerns. Designing and executing multi-channel strategies Monitoring product offerings and price points (both for the brand owner and key competitors) across channels and platforms is likely to be a key focus area for consumer products companies. iii Ipsos Open Thinking Exchange (OTX)] iv “Seeing the big picture: making sense of consumer data,” Deloitte LLP, 2012 • Global business-to-consumer e-commerce sales are expected to pass the 1 trillion euro ($1.25 trillion) mark by 2013 • The total number of Internet users will increase to approximately 3.5 billion from around 2.2 billion at the end of 2011 Source: Interactive Media in Retail Group (IMRG) 8
  11. 11. The omni-channel strategy of each may differ based on such elements as individual market strategy, geographic coverage, consumer affinity to the brand, and product availability, but the common denominator is that the design and execution of the omni-channel strategy need to be clearly defined and aligned with teams across multiple functions including Marketing, Sales, Finance, Supply Chain, and Analytics/Insights. Increasing rigor of account management Some leading consumer products companies have started to introduce new roles within their traditional account teams to focus exclusively on online retail businesses (either the online part of traditional brick and mortar retailers or pure online retailers). Collaboration with key online retailers, who are expected to be ‘category winners’ in the long run, will also play a major role in their future success in the online marketplace. Similar to the focus of consumer products companies on ‘strategic partnerships’ with traditional retailers in the past, it is likely that consumer products companies will increasingly try to create these ‘win-win’ relationships with online retailers. The benefits will not only include incremental sales from this channel, but a richer pool of consumer and shopper insights that can benefit both parties (making use of consumer products companies’ rich perspectives on consumer preferences and online retailers’ invaluable insights into the way that consumers research and purchase online). Integrating consumer and shopper data Given the proliferation of consumer touchpoints and channels (from traditional retail through social media, e-commerce, and mobile commerce), consumer products companies are likely to continue accumulating an enormous amount of data from various internal and external sources. Many leading consumer products companies have started integrating these sources and, by using advanced analytics capabilities, are able to tailor their marketing campaigns, promotion tactics, and brand communications toward the individual consumer. Such cross-functional collaboration—especially between Marketing, Sales, and IT—will be crucial for the success of consumer products companies when it comes to developing commercial strategies and tactics based on the plethora of available data. Adapting operating models The opportunity for consumer products companies to manage their brands online, engage with consumers at an individual level, and drive sales through digital channels is significant. However, engaging the ever-changing, constantly connected consumer and succeeding in the digital world requires a very agile and sophisticated operating model. Consumer products companies are likely to address their operating models in three key areas: 1. Governance and decision making. Over the past few years, most consumer products companies have been going through major organizational design changes to balance global and regional decision making (in line with the retailers’ own organization structure and consumers’ regional differences). The growth of digital channels, from pure e-Retailers and traditional retailers with online presence, adds a new layer of complexity when it comes to forming teams with the relevant skillset and tools. For example, the account teams needs to reflect the proliferation of consumer touchpoints—from in-store, to e-commerce and m-commerce —to create a seamless consumer experience across all channels. Global Powers of Consumer Products 2013 9
  12. 12. 2. Demand synchronization. Many consumer products companies focus on the front-end, consumer-facing aspect of their business model. In many cases, however, delivering the most appropriate consumer experience requires seamless coordination of multiple functions, from supply chain, to demand planning, to website interface management. Companies that are not advancing their supply chain and demand planning processes are likely to struggle at delivering a consistent, high-quality consumer experience. Such lack of coordination is serious enough in a retail store as it can lead to ‘out- of-stock’ with a resulting loss in revenues. An ‘out-of-stock’ in a consumer products company’s own website ordering system, where consumer expectations on product availability are much higher, may have the additional result of a dissatisfied consumer who will not re-visit the site and could disengage with the brand. 3. Advanced data analytics. Consumer products companies have traditionally led the way in gathering and analyzing consumer data. This has helped them develop targeted marketing campaigns, design trade promotion programs, and engage in a host of essential activities. But with the volume and variety of data availability growing exponentially, consumer products companies need to revisit their operating models to move from using data to simply “report” and enter the next level where they can integrate the plethora of data to make more informed, nuanced, and predictive business decisions. Many consumer products companies have not yet progressed beyond local analytics and are still challenged to capitalize on their existing data. Some leading consumer products companies are already elevating their data analytics capabilities from historical data evaluation and reporting to predictive analytics, scenario planning, and third-party digital data from mobile coupons and electronic tags. Consumer products companies that leverage data analytics in the context of cross-functional and integrated business planning and execution are likeliest to reap the most benefit from the huge amount of data currently available. “Business-as-usual” is dead The consumer products industry is at an inflection point in which companies can no longer rest on the historical strength of their brands alone. The disruptions discussed above will require companies to be agile, adaptive, and innovative. The consumer products companies that can address these cultural challenges are likeliest to differentiate themselves and capitalize on the growth of digital channels and platforms to develop meaningful and sustainable relationships with consumers. 10
  13. 13. Rebound in consumer products industry continued in 2011 amid uncertain global economy During fiscal 2011, the global economy remained in a state of uncertainty. Deteriorating business conditions in developed markets were triggered by such factors as the euro crisis and the failure of the U.S. government to agree on a path toward fiscal rectitude. Inflation emerged as a new global economic challenge, manifested by a substantial rise in the prices of almost all commodities. Natural disasters including the Great East Japan Earthquake and the Thailand floods contributed to the economic volatility. Although the economy decelerated in 2011 in many of the world’s leading markets, composite, currency-adjusted sales for the 250 largest consumer products companies grew 7.0 percent. This followed an 8.4 percent jump in sales in 2010, the beginning of the turnaround in the consumer products industry as it emerged from the global financial crisis of 2008. The industry’s continued rebound was widespread—80 percent of Top 250 companies reported a sales increase in 2011. Among the 20 percent of companies with declining sales, half were Japanese, as Japan’s economy contracted in the aftermath of the devastating earthquake and tsunami. The ongoing appreciation of the yen also remained an issue for Japan-based manufacturers throughout 2011. Top-line gains translated into solid profitability for most consumer products companies. Nearly 90 percent of the companies that disclosed their bottom-line results (200 of 224) were profitable in 2011. The composite net profit margin for the 224 reporting companies was 6.5 percent, a solid result, but down from 8.5 percent in 2010. With asset turnover remaining at 0.9 times, return on assets for the Top 250 was 6.0 percent compared with 7.5 percent in 2010. Total sales for the world’s 250 largest consumer products companies exceeded $3 trillion in 2011. The average Top 250 company generated sales of $12.5 billion. To join the ranks of the Top 250 in 2011 required net sales of more than $3 billion, up from $2.5 billion in 2010. Top 250 highlights Top 250 quick stats, 2011 • $3.12 trillion—aggregate net sales of Top 250 in US$ • $12.5 billion—average size of Top 250 consumer products companies • $3.02 billion—minimum sales required to be on Top 250 list • 7.0 percent—composite year-over-year sales growth • 6.5 percent—composite net profit margin • 0.9x—composite asset turnover • 6.0 percent—composite return on assets • 6.0 percent—composite compound annual sales growth, 2006-2011 • 27.1 percent—economic concentration of top 10 Global Powers of Consumer Products 2013 11
  14. 14. Top 250 consumer products companies Sales Rank FY11 Company Name Country of Origin Region Primary Product Sector FY11 Net Sales (US$mil) FY11 Net Sales Growth FY11 Net Profit Margin 2006- 2011 Net Sales CAGR¹ 1 Samsung Electronics Co., Ltd. South Korea Asia/Pacific Electronic Products 150,152 6.7% 8.3% 14.1% 2 Apple Inc. United States North America Electronic Products 108,249 66.0% 23.9% 41.2% 3 Panasonic Corporation Japan Asia/Pacific Electronic Products 99,412 -9.7% -10.4% -2.9% 4 Nestlé S.A. Switzerland Europe Food, Drink Tobacco 94,704 -10.1% 11.7% n/a 5 The Procter Gamble Company United States North America Personal Household Products 83,680 1.4% 13.0% 1.8% 6 Sony Corporation Japan Asia/Pacific Electronic Products 70,022 -12.3% -6.1% -6.1% 7 PepsiCo, Inc. United States North America Food, Drink Tobacco 66,504 15.0% 9.7% 13.6% 8 Unilever Group Netherlands and United Kingdom Europe Personal Household Products 64,721 5.0% 9.9% 3.2% 9 Kraft Foods Inc. (now Mondelēz International, Inc.) United States North America Food, Drink Tobacco 54,365 10.5% 6.5% 9.6% 10 Nokia Corporation Finland Europe Electronic Products 53,846 -8.9% -3.8% -1.2% 11 LG Electronics Inc. South Korea Asia/Pacific Electronic Products 49,373 -2.7% -0.8% 3.2% 12 The Coca-Cola Company United States North America Food, Drink Tobacco 46,542 32.5% 18.6% 14.1% 13 Anheuser-Busch InBev SA/NV Belgium Europe Food, Drink Tobacco 39,046 7.6% 20.4% 18.5% 14 Bridgestone Corporation Japan Asia/Pacific Tires 37,986 5.7% 3.6% 0.2% 15 JBS S.A. Brazil Latin America Food, Drink Tobacco 37,120 12.2% -0.5% 70.4% 16 Mars, Incorporated United States North America Food, Drink Tobacco 33,000e 10.0% n/a 9.5% 17 Japan Tobacco Inc. Japan Asia/Pacific Food, Drink Tobacco 32,272 2.5% 9.1% 4.4% 18 Tyson Foods, Inc. United States North America Food, Drink Tobacco 32,266 13.5% 2.3% 4.8% 19 Sharp Corporation Japan Asia/Pacific Electronic Products 31,116 -18.7% -15.2% -4.7% 20 Philip Morris International Inc. United States North America Food, Drink Tobacco 31,097 14.3% 28.6% ne 21 Lenovo Group Limited Hong Kong Asia/Pacific Electronic Products 29,574 37.0% 1.6% 15.2% 22 Compagnie Générale des Établissements Michelin S.C.A. France Europe Tires 28,858 15.8% 7.1% 4.8% 23 L’Oréal S.A. France Europe Personal Household Products 28,335 4.3% 12.0% 5.2% 24 Danone France Europe Food, Drink Tobacco 26,907 13.6% 9.6% 6.5% 25 British American Tobacco plc United Kingdom Europe Food, Drink Tobacco 24,706 3.5% 21.9% 9.5% 26 Imperial Tobacco Group PLC United Kingdom Europe Food, Drink Tobacco 24,398 1.1% 12.0% 36.9% 27 NIKE, Inc. United States North America Fashion Goods 24,128 15.7% 9.2% 8.1% 28 Heineken N.V. Netherlands Europe Food, Drink Tobacco 23,850 6.1% 9.1% 7.7% 29 Haier Group Company China Asia/Pacific Home Furnishings Equipment 23,388 11.2% n/a 7.0% 30 The Goodyear Tire Rubber Company United States North America Tires 22,767 20.9% 1.8% 2.4% 31 Suntory Holdings Limited Japan Asia/Pacific Food, Drink Tobacco 22,643 3.5% 3.8% 5.0% 32 Kirin Holdings Company, Limited Japan Asia/Pacific Food, Drink Tobacco 21,960 -4.7% 1.3% 6.7% ¹ Compound annual growth rate n/a = not available ne = not in existence (created by merger or divestiture) e = estimate * Unable to determine if company’s reported sales exclude excise taxes ** Company’s reported sales include unspecified excise taxes 12
  15. 15. Top 250 consumer products companies Sales Rank FY11 Company Name Country of Origin Region Primary Product Sector FY11 Net Sales (US$mil) FY11 Net Sales Growth FY11 Net Profit Margin 2006- 2011 Net Sales CAGR¹ 33 Henkel AG Co. KGaA Germany Europe Personal Household Products 21,735 3.4% 8.2% 4.1% 34 Groupe Lactalis France Europe Food, Drink Tobacco 20,893 44.2% n/a 14.9% 35 Kimberly-Clark Corporation United States North America Personal Household Products 20,846 5.6% 8.1% 4.5% 36 Whirlpool Corporation United States North America Home Furnishings Equipment 18,666 1.6% 2.2% 0.6% 37 adidas AG Germany Europe Fashion Goods 18,586 11.3% 5.0% 5.8% 38 Research In Motion Limited Canada North America Electronic Products 18,435 -7.4% 6.3% 43.4% 39 Diageo plc United Kingdom Europe Food, Drink Tobacco 17,057 8.3% 19.3% 7.5% 40 Colgate-Palmolive Company United States North America Personal Household Products 16,734 7.5% 15.3% 6.5% 41 SABMiller plc United Kingdom Europe Food, Drink Tobacco 16,713 10.4% 26.8% 2.4% 42 General Mills, Inc. United States North America Food, Drink Tobacco 16,658 11.9% 9.5% 6.0% 43 Altria Group, Inc. United States North America Food, Drink Tobacco 16,619 -1.6% 20.4% -25.1% 44 LIXIL Group Corporation (formerly JS Group Corporation) Japan Asia/Pacific Home Improvement Products 16,362 6.3% 0.0% 2.8% 45 Fomento Económico Mexicano, S.A.B. de C.V. (FEMSA) Mexico Latin America Food, Drink Tobacco 16,321 19.9% 10.2% 9.9% 46 Acer Incorporated Taiwan Asia/Pacific Electronic Products 16,247 -24.4% -1.4% 5.2% 47 AB Electrolux Sweden Europe Home Furnishings Equipment 15,681 -4.4% 2.0% -0.4% 48 BRF – Brasil Foods S.A. Brazil Latin America Food, Drink Tobacco 15,441 13.3% 5.3% 37.6% 49 Kao Corporation Japan Asia/Pacific Personal Household Products 15,408 2.5% 4.5% -0.3% 50 Reckitt Benckiser Group plc United Kingdom Europe Personal Household Products 15,217 12.2% 18.5% 14.0% 51 Ajinomoto Co., Inc. Japan Asia/Pacific Food, Drink Tobacco 15,170 -0.9% 4.0% 0.7% 52 Cargill Meat Solutions Corporation United States North America Food, Drink Tobacco 15,000e n/a n/a n/a 53 GD Midea Holding Co., Ltd. China Asia/Pacific Home Furnishings Equipment 14,428 24.9% 4.9% 34.5% 54 Meiji Holdings Co., Ltd. Japan Asia/Pacific Food, Drink Tobacco 14,055 -0.4% 0.6% ne 55 Dr. August Oetker KG Germany Europe Food, Drink Tobacco 13,944* 5.9% n/a 7.0% 56 BSH Bosch und Siemens Hausgeräte GmbH Germany Europe Home Furnishings Equipment 13,446 6.4% 3.9% 3.0% 57 Royal FrieslandCampina N.V. Netherlands Europe Food, Drink Tobacco 13,407 7.3% 2.2% ne 58 ConAgra Foods, Inc. United States North America Food, Drink Tobacco 13,263 7.8% 3.6% 2.0% 59 Kellogg Company United States North America Food, Drink Tobacco 13,198 6.5% 9.3% 3.9% 60 Asahi Group Holdings, Ltd. (formerly Asahi Breweries, Ltd.) Japan Asia/Pacific Food, Drink Tobacco 13,150 -0.8% 5.3% 2.0% 61 Marfrig Alimentos S.A. Brazil Latin America Food, Drink Tobacco 13,146 37.8% -3.4% 59.3% ¹ Compound annual growth rate n/a = not available ne = not in existence (created by merger or divestiture) e = estimate * Unable to determine if company’s reported sales exclude excise taxes ** Company’s reported sales include unspecified excise taxes Global Powers of Consumer Products 2013 13
  16. 16. Top 250 consumer products companies Sales Rank FY11 Company Name Country of Origin Region Primary Product Sector FY11 Net Sales (US$mil) FY11 Net Sales Growth FY11 Net Profit Margin 2006- 2011 Net Sales CAGR¹ 62 ASUSTeK Computer Inc. Taiwan Asia/Pacific Electronic Products 13,129 -10.6% 4.4% -7.3% 63 Smithfield Foods, Inc. United States North America Food, Drink Tobacco 13,094 7.3% 2.8% 1.9% 64 Vion N.V. Netherlands Europe Food, Drink Tobacco 13,076 7.1% 0.1% 5.0% 65 Motorola Mobility Holdings, Inc. United States North America Electronic Products 13,064 14.0% -1.9% ne 66 Dean Foods Company United States North America Food, Drink Tobacco 13,055 7.7% -12.2% 5.3% 67 Dairy Farmers of America United States North America Food, Drink Tobacco 13,000 32.7% 0.3% 10.5% 68 Nippon Meat Packers, Inc. Japan Asia/Pacific Food, Drink Tobacco 12,895 2.9% 1.2% 0.8% 69 Gree Electric Appliances, Inc. of Zhuhai China Asia/Pacific Home Furnishings Equipment 12,886 37.6% 6.4% 25.9% 70 Land O’Lakes, Inc. United States North America Food, Drink Tobacco 12,849 15.3% 1.4% 12.6% 71 Maxingvest AG Germany Europe Personal Household Products 12,777 2.4% 3.1% n/a 72 Uni-President Enterprises Corp. Taiwan Asia/Pacific Food, Drink Tobacco 12,709 11.5% 3.8% 8.4% 73 Svenska Cellulosa AB SCA Sweden Europe Personal Household Products 12,554 -25.5% 0.7% -4.3% 74 Compagnie Financière Richemont SA Switzerland Europe Fashion Goods 12,226 28.7% 17.4% 12.9% 75 Carlsberg A/S Denmark Europe Food, Drink Tobacco 11,882 5.8% 9.0% 9.1% 76 Yamazaki Baking Co., Ltd. Japan Asia/Pacific Food, Drink Tobacco 11,716 0.5% 0.9% 4.5% 77 H. J. Heinz Company United States North America Food, Drink Tobacco 11,649 8.8% 8.1% 5.3% 78 Nikon Corporation Japan Asia/Pacific Electronic Products 11,639 3.5% 6.5% 2.2% 79 Avon Products, Inc. United States North America Personal Household Products 11,112 3.5% 4.6% 5.1% 80 Pernod Ricard S.A. France Europe Food, Drink Tobacco 11,013 7.5% 14.3% 5.0% 81 Alticor Inc. United States North America Personal Household Products 10,900 18.5% n/a 11.6% 82 Grupo Bimbo, S.A.B. de C.V. Mexico Latin America Food, Drink Tobacco 10,811 14.1% 4.2% 16.0% 83 Hangzhou Wahaha Group Co., Ltd. China Asia/Pacific Food, Drink Tobacco 10,522e 23.7% 18.1% 29.4% 84 Stanley Black Decker, Inc. United States North America Home Improvement Products 10,376 23.4% 6.7% 20.9% 85 Arla Foods amba Denmark Europe Food, Drink Tobacco 10,262 12.0% 2.4% 3.8% 86 The Ferrero Group Italy Europe Food, Drink Tobacco 10,028 9.4% n/a 5.2% 87 The Estée Lauder Companies Inc. United States North America Personal Household Products 9,714 10.3% 8.9% 6.7% 88 Danish Crown A/S Denmark Europe Food, Drink Tobacco 9,689 14.5% 3.4% 1.3% 89 Coca-Cola Hellenic Bottling Company S.A. Greece Europe Food, Drink Tobacco 9,547 0.9% 4.0% 4.1% 90 S.C. Johnson Son, Inc. United States North America Personal Household Products 9,400e 4.4% n/a 4.6% 91 V.F. Corporation United States North America Fashion Goods 9,365 22.8% 9.4% 8.8% ¹ Compound annual growth rate n/a = not available ne = not in existence (created by merger or divestiture) e = estimate * Unable to determine if company’s reported sales exclude excise taxes ** Company’s reported sales include unspecified excise taxes 14
  17. 17. Top 250 consumer products companies Sales Rank FY11 Company Name Country of Origin Region Primary Product Sector FY11 Net Sales (US$mil) FY11 Net Sales Growth FY11 Net Profit Margin 2006- 2011 Net Sales CAGR¹ 92 TCL Corporation China Asia/Pacific Electronic Products 9,212 14.7% 2.7% 4.9% 93 Luxottica Group S.p.A. Italy Europe Fashion Goods 8,667 7.3% 7.4% 5.9% 94 Shiseido Company, Limited Japan Asia/Pacific Personal Household Products 8,646 1.7% 2.5% -0.4% 95 Reynolds American Inc. United States North America Food, Drink Tobacco 8,541 -0.1% 16.5% 0.1% 96 Sumitomo Rubber Industries, Ltd. Japan Asia/Pacific Tires 8,502 12.0% 4.7% 4.9% 97 Coca-Cola Enterprises, Inc. United States North America Food, Drink Tobacco 8,284 23.4% 9.0% ne 98 Nintendo Co., Ltd. Japan Asia/Pacific Leisure Goods 8,206 -36.2% -0.0% -7.7% 99 Sichuan Changhong Electric Co. Ltd China Asia/Pacific Electronic Products 8,058 24.7% 0.6% 22.6% 100 Hormel Foods Corporation United States North America Food, Drink Tobacco 7,895 9.3% 6.1% 6.6% 101 Pirelli C. S.p.A. Italy Europe Tires 7,876 16.6% 7.6% 3.2% 102 Tingyi (Cayman Islands) Holding Corp. China Asia/Pacific Food, Drink Tobacco 7,867 17.7% 6.4% 27.5% 103 Campbell Soup Company United States North America Food, Drink Tobacco 7,719 0.6% 10.4% 1.0% 104 The Swatch Group Ltd. Switzerland Europe Fashion Goods 7,659 10.7% 18.9% 7.0% 105 MillerCoors LLC United States North America Food, Drink Tobacco 7,550 -0.3% 13.4% ne 106 Masco Corporation United States North America Home Improvement Products 7,467 -1.6% -7.1% -10.2% 107 Morinaga Milk Industry Co., Ltd. Japan Asia/Pacific Food, Drink Tobacco 7,327 -0.8% 0.8% 0.0% 108 Sony Ericsson Mobile Communications AB Sweden Europe Electronic Products 7,259 -17.2% -4.3% -13.8% 109 Dole Food Company, Inc. United States North America Food, Drink Tobacco 7,224 4.8% 0.6% 3.2% 110 Saputo Inc. Canada North America Food, Drink Tobacco 6,986 15.0% 5.5% 11.6% 111 National Beef Packing Company, LLC United States North America Food, Drink Tobacco 6,849 17.9% 3.8% 8.1% 112 Nippon Suisan Kaisha, Ltd. Japan Asia/Pacific Food, Drink Tobacco 6,817 8.8% 0.4% -0.5% 113 Charoen Pokphand Foods PCL Thailand Asia/Pacific Food, Drink Tobacco 6,805 9.0% 7.6% 10.5% 114 Grupo Modelo, S.A.B. de C.V. Mexico Latin America Food, Drink Tobacco 6,796* 8.0% 20.2% 11.0% 115 Savola Group Company Saudi Arabia Africa/ Middle East Food, Drink Tobacco 6,721 19.8% 5.8% 22.6% 116 Jarden Corporation United States North America Personal Household Products 6,680 10.9% 3.1% 11.7% 117 Ralph Lauren Corporation (formerly Polo Ralph Lauren Corporation) United States North America Fashion Goods 6,679 21.8% 9.9% 10.5% 118 Lotte Japan Group Japan Asia/Pacific Food, Drink Tobacco 6,614 -1.4% 0.9% 3.1% 119 Megmilk Snow Brand Co., Ltd. Japan Asia/Pacific Food, Drink Tobacco 6,454 1.0% 1.8% ne ¹ Compound annual growth rate n/a = not available ne = not in existence (created by merger or divestiture) e = estimate * Unable to determine if company’s reported sales exclude excise taxes ** Company’s reported sales include unspecified excise taxes Global Powers of Consumer Products 2013 15
  18. 18. Top 250 consumer products companies Sales Rank FY11 Company Name Country of Origin Region Primary Product Sector FY11 Net Sales (US$mil) FY11 Net Sales Growth FY11 Net Profit Margin 2006- 2011 Net Sales CAGR¹ 120 Tönnies Lebensmittel GmbH Co. KG (formerly B. C. Tönnies Fleischwerk GmbH Co. KG) Germany Europe Food, Drink Tobacco 6,407e 7.0% n/a 10.8% 121 Ruchi Soya Industries Ltd. India Asia/Pacific Food, Drink Tobacco 6,272 66.6% 0.3% 27.4% 122 Mattel, Inc. United States North America Leisure Goods 6,266 7.0% 12.3% 2.1% 123 Sodiaal Union France Europe Food, Drink Tobacco 6,159 68.1% 0.2% 17.2% 124 Mccain Foods Limited Canada North America Food, Drink Tobacco 6,084e 0.0% n/a 0.3% 125 The Hershey Company United States North America Food, Drink Tobacco 6,081 7.2% 10.3% 4.2% 126 Groupe Terrena France Europe Food, Drink Tobacco 6,080 12.8% 0.5% 7.4% 127 Kewpie Corporation Japan Asia/Pacific Food, Drink Tobacco 6,076 3.3% 2.1% 1.3% 128 Groupe Bigard S.A. France Europe Food, Drink Tobacco 6,059e -3.3% n/a 35.7% 129 CJ CheilJedang Corp. South Korea Asia/Pacific Food, Drink Tobacco 5,950 15.3% 4.8% 20.0% 130 Red Bull GmbH Austria Europe Food, Drink Tobacco 5,924 12.4% n/a 10.0% 131 Hankook Tire Co., Ltd. South Korea Asia/Pacific Tires 5,905 11.6% 5.5% 15.4% 132 Dr Pepper Snapple Group, Inc. United States North America Food, Drink Tobacco 5,903 4.7% 10.3% ne 133 Newell Rubbermaid Inc. United States North America Personal Household Products 5,865 1.8% 2.1% -1.1% 134 The Yokohama Rubber Co., Ltd. Japan Asia/Pacific Tires 5,842 n/a 2.6% n/a 135 Essilor International (Compagnie Générale D’Optique) S.A. France Europe Personal Household Products 5,835 7.7% 12.4% 9.3% 136 Henan Shuanghui Investment Development Co. Ltd. China Asia/Pacific Food, Drink Tobacco 5,829 2.4% 1.7% 20.0% 137 Inner Mongolia Yili Industrial Group Co., Ltd. China Asia/Pacific Food, Drink Tobacco 5,803 26.2% 4.9% 17.7% 138 China Mengniu Dairy Company Limited China Asia/Pacific Food, Drink Tobacco 5,794 23.5% 4.8% 18.1% 139 Nichirei Corporation Japan Asia/Pacific Food, Drink Tobacco 5,764 3.9% 1.7% -0.1% 140 Namco Bandai Holdings Inc. Japan Asia/Pacific Leisure Goods 5,755 15.2% 4.3% -0.2% 141 TOTO Ltd. Japan Asia/Pacific Home Improvement Products 5,736 4.4% 2.2% -2.4% 142 Itoham Foods Inc. Japan Asia/Pacific Food, Drink Tobacco 5,669 -1.9% 0.5% -2.4% 143 Mohawk Industries, Inc. United States North America Home Improvement Products 5,642 6.1% 3.2% -6.5% 144 Nisshin Seifun Group Inc. Japan Asia/Pacific Food, Drink Tobacco 5,600 4.2% 3.2% 1.1% 145 Bongrain SA France Europe Food, Drink Tobacco 5,545 11.5% 1.3% 3.6% 146 Pioneer Corporation Japan Asia/Pacific Electronic Products 5,534 -4.5% 1.0% -11.2% 147 The J.M. Smucker Company United States North America Food, Drink Tobacco 5,526 14.5% 8.3% 20.8% 148 Groupe SEB France Europe Home Furnishings Equipment 5,520 8.5% 6.6% 8.4% 149 The Clorox Company United States North America Personal Household Products 5,468 4.5% 9.9% 2.4% 150 ITC Limited India Asia/Pacific Food, Drink Tobacco 5,461 17.5% 23.2% 15.3% 151 Barilla Holding S.p.A. Italy Europe Food, Drink Tobacco 5,454 0.3% 1.9% -1.0% ¹ Compound annual growth rate n/a = not available ne = not in existence (created by merger or divestiture) e = estimate * Unable to determine if company’s reported sales exclude excise taxes ** Company’s reported sales include unspecified excise taxes 16
  19. 19. Top 250 consumer products companies Sales Rank FY11 Company Name Country of Origin Region Primary Product Sector FY11 Net Sales (US$mil) FY11 Net Sales Growth FY11 Net Profit Margin 2006- 2011 Net Sales CAGR¹ 152 DMK Deutsches Milchkontor GmbH Germany Europe Food, Drink Tobacco 5,442 ne 0.1% ne 153 Rolex SA Switzerland Europe Fashion Goods 5,435e 26.3% n/a n/a 154 Unicharm Corporation Japan Asia/Pacific Personal Household Products 5,428 13.6% 7.2% 7.3% 155 PVH Corp. (formerly Phillips-Van Heusen Corporation) United States North America Fashion Goods 5,410 28.2% 5.4% 23.9% 156 Arçelik A.Ş. Turkey Africa/ Middle East Home Furnishings Equipment 5,056 21.6% 6.4% 3.9% 157 Coca-Cola West Co., Ltd. Japan Asia/Pacific Food, Drink Tobacco 5,020 6.4% 1.8% 4.0% 158 Bacardi Limited Bermuda Latin America Food, Drink Tobacco 5,000e 0.0% n/a 4.6% 159 Kohler Co. United States North America Home Improvement Products 5,000e 6.8% n/a 0.0% 160 PT Indofood Sukses Makmur Tbk Indonesia Asia/Pacific Food, Drink Tobacco 4,987 18.0% 10.8% 15.6% 161 Fraser and Neave, Limited Singapore Asia/Pacific Food, Drink Tobacco 4,981** 10.1% 17.8% 10.6% 162 Coca-Cola Amatil Limited Australia Asia/Pacific Food, Drink Tobacco 4,961 6.9% 12.2% 2.0% 163 Maple Leaf Foods Inc. Canada North America Food, Drink Tobacco 4,952 -1.5% 1.8% -3.7% 164 Nissin Foods Holdings Co., Ltd. Japan Asia/Pacific Food, Drink Tobacco 4,823 1.5% 4.9% 1.2% 165 Perdue Farms, Inc. United States North America Food, Drink Tobacco 4,800e 0.8% n/a 7.5% 166 Activision Blizzard, Inc. United States North America Leisure Goods 4,755 6.9% 22.8% 25.7% 167 Ralcorp Holdings, Inc. United States North America Food, Drink Tobacco 4,741 17.1% -3.9% 20.7% 168 Ito En, Ltd. Japan Asia/Pacific Food, Drink Tobacco 4,690 5.0% 2.5% 3.5% 169 Husqvarna Group Sweden Europe Home Improvement Products 4,685 -5.8% 3.3% 0.6% 170 Levi Strauss Co. United States North America Fashion Goods 4,674 8.1% 2.8% 2.6% 171 GRUMA, S.A.B. de C.V. Mexico Latin America Food, Drink Tobacco 4,661 23.7% 10.1% 13.5% 172 Energizer Holdings, Inc. United States North America Personal Household Products 4,646 9.4% 5.6% 8.6% 173 Hanesbrands Inc. United States North America Fashion Goods 4,637 7.2% 5.8% 1.0% 174 La Coop fédérée Canada North America Food, Drink Tobacco 4,618 15.3% 0.6% 7.5% 175 Coty Inc. United States North America Personal Household Products 4,600 12.2% n/a 6.9% 176 Yamaha Corporation Japan Asia/Pacific Leisure Goods 4,518 -4.6% -8.2% -8.3% 177 Lorillard, Inc. United States North America Food, Drink Tobacco 4,452 9.8% 25.1% 7.8% 178 Sapporo Holdings Limited Japan Asia/Pacific Food, Drink Tobacco 4,289 26.5% 0.9% 3.0% 179 Hasbro, Inc. United States North America Leisure Goods 4,286 7.1% 9.0% 6.3% ¹ Compound annual growth rate n/a = not available ne = not in existence (created by merger or divestiture) e = estimate * Unable to determine if company’s reported sales exclude excise taxes ** Company’s reported sales include unspecified excise taxes Global Powers of Consumer Products 2013 17
  20. 20. Top 250 consumer products companies Sales Rank FY11 Company Name Country of Origin Region Primary Product Sector FY11 Net Sales (US$mil) FY11 Net Sales Growth FY11 Net Profit Margin 2006- 2011 Net Sales CAGR¹ 180 Puma SE formerly Puma AG Rudolf Dassler Sport) Germany Europe Fashion Goods 4,191 11.2% 7.7% 4.9% 181 Vestel Elektronik Sanayi ve Ticaret A.Ş. Turkey Africa/ Middle East Electronic Products 4,181 31.9% -0.4% 5.9% 182 World Co., Ltd. Japan Asia/Pacific Fashion Goods 4,180 8.0% 0.8% -0.2% 183 China Yurun Food Group Limited Hong Kong Asia/Pacific Food, Drink Tobacco 4,152 50.5% 5.6% 47.5% 184 Electronic Arts Inc. United States North America Leisure Goods 4,143 15.4% 1.8% 6.0% 185 Lion Corporation Japan Asia/Pacific Personal Household Products 4,113 -1.1% 1.4% -0.2% 186 Cheng Shin Rubber Ind. Co., Ltd. Taiwan Asia/Pacific Tires 4,100 20.0% 7.2% 20.1% 187 Hallmark Cards, Inc. United States North America Leisure Goods 4,100 0.0% n/a 0.0% 188 The Hillshire Brands Company (formerly Sara Lee Corporation) United States North America Food, Drink Tobacco 4,094 -52.8% 20.7% -19.7% 189 Miele Cie. KG Germany Europe Home Furnishings Equipment 4,075 3.1% n/a 2.1% 190 Toyo Suisan Kaisha, Ltd. Japan Asia/Pacific Food, Drink Tobacco 4,067 4.9% 5.2% -0.0% 191 JVCKENWOOD Corporation Japan Asia/Pacific Electronic Products 4,065 -9.0% 1.9% ne 192 Toyo Tire Rubber Co., Ltd. Japan Asia/Pacific Tires 4,062 9.0% 2.2% 0.0% 193 Swarovski AG Austria Europe Fashion Goods 3,997 7.9% n/a 3.9% 194 The Nisshin OilliO Group, Ltd. Japan Asia/Pacific Food, Drink Tobacco 3,961 2.4% 1.3% 5.3% 195 Yakult Honsha Co., Ltd. Japan Asia/Pacific Food, Drink Tobacco 3,960 2.2% 5.6% 2.7% 196 Indesit Company Italy Europe Home Furnishings Equipment 3,935 -1.9% 2.1% -2.8% 197 Cooper Tire Rubber Company United States North America Tires 3,927 16.8% 6.9% 8.0% 198 L.D.C. SA France Europe Food, Drink Tobacco 3,844 8.6% 2.0% 12.0% 199 Casio Computer Co., Ltd. Japan Asia/Pacific Electronic Products 3,822 -11.7% 0.9% -13.4% 200 Société Coopérative Agricole et Agro-alimentaire AGRIAL France Europe Food, Drink Tobacco 3,782 20.1% 1.4% 12.3% 201 Seiko Holdings Corporation Japan Asia/Pacific Fashion Goods 3,762 -5.4% -3.4% 7.3% 202 D.E Master Blenders 1753 N.V. Netherlands Europe Food, Drink Tobacco 3,747 ne 4.7% ne 203 The Jones Group Inc. (formerly Jones Apparel Group, Inc.) United States North America Fashion Goods 3,734 3.9% 1.4% -4.4% 204 Agropur Cooperative Canada North America Food, Drink Tobacco 3,702 9.1% 1.2% 9.8% 205 McCormick Company, Inc. United States North America Food, Drink Tobacco 3,698 10.8% 10.1% 6.4% 206 Mead Johnson Nutrition Company United States North America Food, Drink Tobacco 3,677 17.0% 14.1% ne 207 Del Monte Corporation United States North America Food, Drink Tobacco 3,676 0.3% 0.9% 1.5% 208 Ezaki Glico Co., Ltd. Japan Asia/Pacific Food, Drink Tobacco 3,674 2.1% 0.1% 1.5% 209 Techtronic Industries Co. Ltd. Hong Kong Asia/Pacific Home Improvement Products 3,667 8.7% 4.1% 5.6% ¹ Compound annual growth rate n/a = not available ne = not in existence (created by merger or divestiture) e = estimate * Unable to determine if company’s reported sales exclude excise taxes ** Company’s reported sales include unspecified excise taxes 18
  21. 21. Top 250 consumer products companies Sales Rank FY11 Company Name Country of Origin Region Primary Product Sector FY11 Net Sales (US$mil) FY11 Net Sales Growth FY11 Net Profit Margin 2006- 2011 Net Sales CAGR¹ 210 Arca Continental, S.A.B. de C.V. (formerly Embotelladoras Arca, S. A. B. de C. V.) Mexico Latin America Food, Drink Tobacco 3,622 65.5% 10.4% 21.9% 211 Skyworth Digital Holdings Limited Hong Kong Asia/Pacific Electronic Products 3,618 15.6% 4.5% 17.5% 212 Fresh Del Monte Produce Inc. United States North America Food, Drink Tobacco 3,590 1.0% 2.6% 2.2% 213 Kikkoman Corporation Japan Asia/Pacific Food, Drink Tobacco 3,589 -0.1% 3.2% -6.3% 214 Tsingtao Brewery Co., Ltd. China Asia/Pacific Food, Drink Tobacco 3,589 16.4% 7.8% 14.4% 215 Kumho Tire Co., Ltd. South Korea Asia/Pacific Tires 3,563 11.9% -0.7% 13.5% 216 Citizen Holdings Co., Ltd. Japan Asia/Pacific Fashion Goods 3,545 -1.8% 2.8% -3.6% 217 Fromageries Bel S.A. France Europe Food, Drink Tobacco 3,520 4.5% 3.8% 7.3% 218 Molson Coors Brewing Company United States North America Food, Drink Tobacco 3,516 8.0% 19.3% -9.7% 219 Ashley Furniture Industries, Inc. United States North America Home Furnishings Equipment 3,510e 21.0% n/a 2.4% 220 The Lego Group Denmark Europe Leisure Goods 3,502 17.0% 22.2% 19.1% 221 HKScan Corporation Finland Europe Food, Drink Tobacco 3,470 17.9% 0.5% 21.7% 222 Herbalife Ltd. United States North America Food, Drink Tobacco 3,455 26.3% 11.9% 12.9% 223 Prima Meat Packers, Ltd. Japan Asia/Pacific Food, Drink Tobacco 3,436 8.1% 1.9% -0.7% 224 The TINE Group Norway Europe Food, Drink Tobacco 3,412 3.0% 4.8% 5.0% 225 Nippon Flour Mills Co., Ltd. Japan Asia/Pacific Food, Drink Tobacco 3,409 6.7% 2.3% 2.4% 226 E. J. Gallo Winery United States North America Food, Drink Tobacco 3,400e 7.6% n/a 4.7% 227 KTG Corporation South Korea Asia/Pacific Food, Drink Tobacco 3,388 7.6% 21.9% 5.7% 228 Hisense Electric Co., Ltd. China Asia/Pacific Electronic Products 3,371 10.0% 7.3% 12.5% 229 Konami Corporation Japan Asia/Pacific Leisure Goods 3,367 3.0% 8.7% 5.9% 230 Natura Cosméticos S.A. Brazil Latin America Personal Household Products 3,359 8.9% 14.9% 15.2% 231 Fortune Brands Home Security, Inc. United States North America Home Improvement Products 3,329 ne -1.0% ne 232 Perfetti Van Melle S.p.A. Italy Europe Food, Drink Tobacco 3,300 5.5% n/a 7.5% 233 Boparan Holdings Limited United Kingdom Europe Food, Drink Tobacco 3,298 161.5% -0.8% 42.6% 234 Controladora Mabe S.A. de C.V. Mexico Latin America Home Furnishings Equipment 3,296e 2.2% -2.1% 0.9% 235 Bestseller Finland Europe Fashion Goods 3,216 19.7% n/a n/a 236 Premier Foods plc United Kingdom Europe Food, Drink Tobacco 3,208 -18.0% -17.0% 15.8% 237 JELD-WEN, Inc. United States North America Home Improvement Products 3,200e 6.7% n/a 0.3% 238 Spectrum Brands Holdings, Inc. United States North America Personal Household Products 3,187 24.1% -2.4% 4.5% 239 Total Produce plc Ireland Europe Food, Drink Tobacco 3,182 -2.5% 1.2% 7.7% 240 LG Household Health Care Ltd. South Korea Asia/Pacific Personal Household Products 3,142 22.1% 7.9% 25.7% 241 ASICS Corporation Japan Asia/Pacific Fashion Goods 3,140 5.3% 5.3% 5.0% ¹ Compound annual growth rate n/a = not available ne = not in existence (created by merger or divestiture) e = estimate * Unable to determine if company’s reported sales exclude excise taxes ** Company’s reported sales include unspecified excise taxes Global Powers of Consumer Products 2013 19
  22. 22. Top 250 consumer products companies Sales Rank FY11 Company Name Country of Origin Region Primary Product Sector FY11 Net Sales (US$mil) FY11 Net Sales Growth FY11 Net Profit Margin 2006- 2011 Net Sales CAGR¹ 242 Chiquita Brands International, Inc. United States North America Food, Drink Tobacco 3,139 -2.7% 1.8% -6.9% 243 Rinnai Corporation Japan Asia/Pacific Home Furnishings Equipment 3,125 3.0% 7.0% 1.0% 244 Wuliangye Yibin Co., Ltd. China Asia/Pacific Food, Drink Tobacco 3,125 30.7% 31.4% 22.2% 245 Funai Electric Co., Ltd. Japan Asia/Pacific Electronic Products 3,119 -16.8% -1.8% -9.1% 246 Emmi Group Switzerland Europe Food, Drink Tobacco 3,081 1.4% 3.8% 3.1% 247 Westfleisch eG Germany Europe Food, Drink Tobacco 3,074 14.3% 0.2% 5.8% 248 Onward Holdings Co., Ltd. Japan Asia/Pacific Fashion Goods 3,074 -0.9% 1.5% -5.3% 249 Triskalia SCA (formerly Coopagri Bretagne Groupe) France Europe Food, Drink Tobacco 3,064e 0.0% n/a 8.7% 250 Rich Products Corporation United States North America Food, Drink Tobacco 3,020e 2.0% n/a n/a ¹ Compound annual growth rate n/a = not available ne = not in existence (created by merger or divestiture) e = estimate * Unable to determine if company’s reported sales exclude excise taxes ** Company’s reported sales include unspecified excise taxes 20
  23. 23. Top 250 consumer products companies alphabetical listing AB Electrolux 47 Acer Incorporated 46 Activision Blizzard, Inc. 166 adidas AG 37 Agropur Cooperative 204 Ajinomoto Co., Inc. 51 Alticor Inc. 81 Altria Group, Inc. 43 Anheuser-Busch InBev SA/NV 13 Apple Inc. 2 Arca Continental, S.A.B. de C.V. (formerly Embotelladoras Arca, S. A. B. de C. V.) 210 Arçelik A.Ş. 156 Arla Foods amba 85 Asahi Group Holdings, Ltd. (formerly Asahi Breweries, Ltd.) 60 Ashley Furniture Industries, Inc. 219 ASICS Corporation 241 ASUSTeK Computer Inc. 62 Avon Products, Inc. 79 Bacardi Limited 158 Barilla Holding S.p.A. 151 Bestseller 235 Bongrain SA 145 Boparan Holdings Limited 233 BRF – Brasil Foods S.A. 48 Bridgestone Corporation 14 British American Tobacco plc 25 BSH Bosch und Siemens Hausgeräte GmbH 56 Campbell Soup Company 103 Cargill Meat Solutions Corporation 52 Carlsberg A/S 75 Casio Computer Co., Ltd. 199 Charoen Pokphand Foods PCL 113 Cheng Shin Rubber Ind. Co., Ltd. 186 China Mengniu Dairy Company Limited 138 China Yurun Food Group Limited 183 Chiquita Brands International, Inc. 242 Citizen Holdings Co., Ltd. 216 CJ CheilJedang Corp. 129 Clorox Company 149 Coca-Cola Amatil Limited 162 Coca-Cola Company 12 Coca-Cola Enterprises, Inc. 97 Coca-Cola Hellenic Bottling Company S.A. 89 Coca-Cola West Co., Ltd. 157 Colgate-Palmolive Company 40 Compagnie Financière Richemont SA 74 Compagnie Générale des Établissements Michelin S.C.A. 22 ConAgra Foods, Inc. 58 Controladora Mabe S.A. de C.V. 234 Cooper Tire Rubber Company 197 Coty Inc. 175 D.E Master Blenders 1753 N.V. 202 Dairy Farmers of America 67 Danish Crown A/S 88 Danone 24 Dean Foods Company 66 Del Monte Corporation 207 Diageo plc 39 DMK Deutsches Milchkontor GmbH 152 Dole Food Company, Inc. 109 Dr Pepper Snapple Group, Inc. 132 Dr. August Oetker KG 55 E. J. Gallo Winery 226 Electronic Arts Inc. 184 Emmi Group 246 Energizer Holdings, Inc. 172 Essilor International (Compagnie Générale D’Optique) S.A. 135 Estée Lauder Companies Inc. 87 Ezaki Glico Co., Ltd. 208 Ferrero Group 86 Fomento Económico Mexicano, S.A.B. de C.V. (FEMSA) 45 Fortune Brands Home Security, Inc. 231 Fraser and Neave, Limited 161 Fresh Del Monte Produce Inc. 212 Fromageries Bel S.A. 217 Funai Electric Co., Ltd. 245 GD Midea Holding Co., Ltd. 53 General Mills, Inc. 42 Goodyear Tire Rubber Company 30 Gree Electric Appliances, Inc. of Zhuhai 69 Groupe Bigard S.A. 128 Groupe Lactalis 34 Groupe SEB 148 Groupe Terrena 126 GRUMA, S.A.B. de C.V. 171 Grupo Bimbo, S.A.B. de C.V. 82 Grupo Modelo, S.A.B. de C.V. 114 H. J. Heinz Company 77 Haier Group Company 29 Hallmark Cards, Inc. 187 Hanesbrands Inc. 173 Hangzhou Wahaha Group Co., Ltd. 83 Hankook Tire Co., Ltd. 131 Hasbro, Inc. 179 Heineken N.V. 28 Henan Shuanghui Investment Development Co. Ltd. 136 Henkel AG Co. KGaA 33 Herbalife Ltd. 222 Hershey Company 125 Hillshire Brands Company (formerly Sara Lee Corporation) 188 Hisense Electric Co., Ltd. 228 HKScan Corporation 221 Hormel Foods Corporation 100 Husqvarna Group 169 Imperial Tobacco Group PLC 26 Indesit Company 196 Inner Mongolia Yili Industrial Group Co., Ltd. 137 ITC Limited 150 Ito En, Ltd. 168 Itoham Foods Inc. 142 J.M. Smucker Company 147 Japan Tobacco Inc. 17 Jarden Corporation 116 JBS S.A. 15 JELD-WEN, Inc. 237 Jones Group Inc. (formerly Jones Apparel Group, Inc.) 203 JVCKENWOOD Corporation 191 Kao Corporation 49 Kellogg Company 59 Kewpie Corporation 127 Kikkoman Corporation 213 Kimberly-Clark Corporation 35 Kirin Holdings Company, Limited 32 Kohler Co. 159 Konami Corporation 229 Kraft Foods Inc. (now Mondelēz International, Inc.) 9 KTG Corporation 227 Kumho Tire Co., Ltd. 215 L.D.C. SA 198 La Coop fédérée 174 Land O’Lakes, Inc. 70 Lego Group 220 Lenovo Group Limited 21 Levi Strauss Co. 170 LG Electronics Inc. 11 LG Household Health Care Ltd. 240 Lion Corporation 185 LIXIL Group Corporation (formerly JS Group Corporation) 44 L’Oréal S.A. 23 Lorillard, Inc. 177 Lotte Japan Group 118 Luxottica Group S.p.A. 93 Maple Leaf Foods Inc. 163 Marfrig Alimentos S.A. 61 Mars, Incorporated 16 Masco Corporation 106 Mattel, Inc. 122 Maxingvest AG 71 Mccain Foods Limited 124 McCormick Company, Inc. 205 Mead Johnson Nutrition Company 206 Megmilk Snow Brand Co., Ltd. 119 Meiji Holdings Co., Ltd. 54 Miele Cie. KG 189 MillerCoors LLC 105 Mohawk Industries, Inc. 143 Molson Coors Brewing Company 218 Morinaga Milk Industry Co., Ltd. 107 Motorola Mobility Holdings, Inc. 65 Namco Bandai Holdings Inc. 140 National Beef Packing Company, LLC 111 Natura Cosméticos S.A. 230 Nestlé S.A. 4 Newell Rubbermaid Inc. 133 Nichirei Corporation 139 NIKE, Inc. 27 Nikon Corporation 78 Nintendo Co., Ltd. 98 Nippon Flour Mills Co., Ltd. 225 Nippon Meat Packers, Inc. 68 Nippon Suisan Kaisha, Ltd. 112 Nisshin OilliO Group, Ltd. 194 Nisshin Seifun Group Inc. 144 Nissin Foods Holdings Co., Ltd. 164 Nokia Corporation 10 Onward Holdings Co., Ltd. 248 Panasonic Corporation 3 PepsiCo, Inc. 7 Perdue Farms, Inc. 165 Perfetti Van Melle S.p.A. 232 Pernod Ricard S.A. 80 Philip Morris International Inc. 20 Pioneer Corporation 146 Pirelli C. S.p.A. 101 Premier Foods plc 236 Prima Meat Packers, Ltd. 223 Procter Gamble Company 5 PT Indofood Sukses Makmur Tbk 160 Puma SE formerly Puma AG Rudolf Dassler Sport) 180 PVH Corp. (formerly Phillips-Van Heusen Corporation) 155 Ralcorp Holdings, Inc. 167 Ralph Lauren Corporation (formerly Polo Ralph Lauren Corporation) 117 Reckitt Benckiser Group plc 50 Red Bull GmbH 130 Research In Motion Limited 38 Reynolds American Inc. 95 Rich Products Corporation 250 Rinnai Corporation 243 Rolex SA 153 Royal FrieslandCampina N.V. 57 Ruchi Soya Industries Ltd. 121 S.C. Johnson Son, Inc. 90 SABMiller plc 41 Samsung Electronics Co., Ltd. 1 Sapporo Holdings Limited 178 Saputo Inc. 110 Savola Group Company 115 Seiko Holdings Corporation 201 Sharp Corporation 19 Shiseido Company, Limited 94 Sichuan Changhong Electric Co. Ltd 99 Skyworth Digital Holdings Limited 211 Smithfield Foods, Inc. 63 Société Coopérative Agricole et Agro-alimentaire AGRIAL 200 Sodiaal Union 123 Sony Corporation 6 Sony Ericsson Mobile Communications AB 108 Spectrum Brands Holdings, Inc. 238 Stanley Black Decker, Inc. 84 Sumitomo Rubber Industries, Ltd. 96 Suntory Holdings Limited 31 Svenska Cellulosa AB SCA 73 Swarovski AG 193 Swatch Group Ltd. 104 TCL Corporation 92 Techtronic Industries Co. Ltd. 209 TINE Group 224 Tingyi (Cayman Islands) Holding Corp. 102 Tönnies Lebensmittel GmbH Co. KG (formerly B. C. Tönnies Fleischwerk GmbH Co. KG) 120 Total Produce plc 239 TOTO Ltd. 141 Toyo Suisan Kaisha, Ltd. 190 Toyo Tire Rubber Co., Ltd. 192 Triskalia SCA (formerly Coopagri Bretagne Groupe) 249 Tsingtao Brewery Co., Ltd. 214 Tyson Foods, Inc. 18 Unicharm Corporation 154 Unilever Group 8 Uni-President Enterprises Corp. 72 V.F. Corporation 91 Vestel Elektronik Sanayi ve Ticaret A.Ş. 181 Vion N.V. 64 Westfleisch eG 247 Whirlpool Corporation 36 World Co., Ltd. 182 Wuliangye Yibin Co., Ltd. 244 Yakult Honsha Co., Ltd. 195 Yamaha Corporation 176 Yamazaki Baking Co., Ltd. 76 Yokohama Rubber Co., Ltd. 134 Global Powers of Consumer Products 2013 21
  24. 24. Global top 10 consumer products companies, 2011 Source: Published company data * Top 10 and Top 250 sales growth figures are sales-weighted, currency-adjusted composites ** Top 10 and Top 250 figures are sales-weighted composites *** Compound annual growth rate ¹Nestlé’s sales for 2011 and 2010 reflect an accounting change. Comparable sales figures for years prior to 2010 are not available. Top 10 a relatively stable group In 2011, the 10 largest consumer products companies accounted for a slightly smaller share of Top 250 net sales than they did in 2010. The top 10 reported combined sales of $846 billion, a 4.8 percent increase over their 2010 total but well below the 7.0 percent growth rate for the Top 250 overall. As a result, the top 10 accounted for 27.1 percent of total Top 250 sales in 2011, down from 27.8 percent in 2010. The result can be attributed, at least in part, to the impact of the earthquake on the two top 10 companies based in Japan: Panasonic and Sony. South Korea’s Samsung remained the world’s largest consumer products company in 2011, a position it has held since 2007. In fiscal 2006, the period covered by the first Global Powers of Consumer Products report, Altria Group was the top-ranked company. Altria spun off Kraft Foods in 2007 and Philip Morris International in 2008, dropping the company well out of the top 10. In 2011, Kraft Foods, Inc. ranked as number nine. But since the 2011 ranking was compiled, it too has fallen out of the top 10, having split into two independent public companies. On October 1, 2012, the company’s North American grocery business was spun off as Kraft Foods Group. Concurrent with the spinoff, Kraft Foods, Inc. changed its name to Mondelēz International, which comprises the company’s global snacking and food brands. 2011 net sales rank Company name Country of origin Product sector 2011 net sales (US$mil) 2011 net sales growth* 2011 net profit margin** 2011 return on assets** 2006-2011 CAGR*** 1 Samsung Electronics South Korea Electronic Products 150,152 6.7% 8.3% 8.8% 14.1% 2 Apple United States Electronic Products 108,249 66.0% 23.9% 22.3% 41.2% 3 Panasonic Japan Electronic Products 99,412 -9.7% -10.4% -12.4% -2.9% 4 Nestlé¹ Switzerland Food, Drink Tobacco 94,704 -10.1% 11.7% 8.6% n/a 5 Procter Gamble United States Personal Household Products 83,680 1.4% 13.0% 8.2% 1.8% 6 Sony Japan Electronic Products 70,022 -12.3% -6.1% -3.0% -6.1% 7 PepsiCo United States Food, Drink Tobacco 66,504 15.0% 9.7% 8.9% 13.6% 8 Unilever Netherlands and United Kingdom Personal Household Products 64,721 5.0% 9.9% 9.7% 3.2% 9 Kraft Foods (now Mondelēz International) United States Food, Drink Tobacco 54,365 10.5% 6.5% 3.8% 9.6% 10 Nokia Finland Electronic Products 53,846 -8.9% -3.8% -4.1% -1.2% Top 10 $845,654 4.8% 6.9% 5.6% 7.2% Top 250 $3,118,096 7.0% 6.5% 6.0% 6.0% Economic Concentration of Top 10 27.1% Another noteworthy change among the top 10 in recent years is the rise of Apple. The tech giant became the second-largest consumer products company in 2011, climbing from sixth place in 2010 and 23rd place in 2006. How long the company will maintain its second-place ranking among the Top 250 remains to be seen. Although its 2012 sales remained robust overall, growth has slowed considerably since the second quarter of 2012. Nevertheless, relatively modest growth for Apple will likely outpace that of the other industry leaders for some time. Nestlé, the world’s biggest food company, fell from second place to fourth in 2011. This was mostly due to an accounting change, where certain allowances and discounts concerning trade and consumer promotions, selling, distribution, and advertising are now disclosed as a deduction of the company’s sales. Panasonic (known as Matsushita until 2008), PG, Sony, PepsiCo, Unilever, and Nokia—perennial top 10 companies—complete the leader board. Along with Altria, LG Electronics has the distinction of being the only other former top 10 company since the list was first created in 2006. LG dropped to 11th place in 2010, where it remained in 2011, following back-to- back sales declines attributed to slumping handset and television sales. 22
  25. 25. Global Powers of the Consumer Products Industry geographical analysis For purposes of geographical analysis, companies are assigned to a region based on their headquarters location, which may not coincide with where they derive the majority of their sales. Although many companies derive sales from outside their region, 100 percent of each company’s sales are accounted for in that company’s region. Five regions are used for analysis: • Africa/Middle East • Asia/Pacific • Europe • Latin America • North America Japanese companies contract in aftermath of earthquake Results for the Asia/Pacific region as a whole were negatively impacted by the plight of the consumer products manufacturers based in Japan. Composite sales for the Top 250 Japanese companies declined 3.7 percent in 2011. Profitability also fell as these companies struggled to rebound from the devastation caused by the earthquake. Because Japan accounted for more than 60 percent of all Top 250 companies in the Asia/Pacific region (55 of 89), the country’s misfortune had a disproportionate impact on the region’s overall results. * Ranking adjusted to reflect two changes to methodology beginning in 2009. First, a number of electronics companies were removed from the Top 250 as it was determined that the majority of their sales were derived from products and services targeting commercial and institutional customers rather than consumers. In addition, excise taxes were excluded from the sales of tobacco and drinks companies. Company name Country of origin Rank 2011 Rank 2010 Rank 2009 Rank 2008* Rank 2007* Rank 2006* Samsung Electronics South Korea 1 1 1 1 1 2 Apple United States 2 6 12 12 17 23 Panasonic Japan 3 3 3 4 4 4 Nestlé Switzerland 4 2 2 2 2 3 Procter Gamble United States 5 4 4 3 3 5 Sony Japan 6 5 5 6 6 6 PepsiCo United States 7 8 9 9 10 10 Unilever Netherlands and United Kingdom 8 7 8 7 9 8 Kraft Foods (now Mondelēz International) United States 9 10 10 10 11 ne Nokia Finland 10 9 7 5 7 7 FY11 top 10 consumer products company rankings 2006-2011 Performance by region/country, 2011 Number of companies Average size (US$mil) 2011 net sales growth* 2011 net profit margin** 2011 return on assets** 2006- 2011 net sales CAGR*** Africa/Middle East 3 $5,319 23.5% 4.4% 5.0% 9.8% Asia/Pacific 89 $12,119 1.8% 1.7% 1.8% 4.6% Japan 55 $11,320 -3.7% -1.2% -1.1% -1.1% Other Asia/Pac¹ 34 $13,412 9.9% 6.0% 7.5% 11.6% China/Hong Kong 17 $9,111 23.0% 5.6% 9.1% 16.8% Europe 65 $13,169 4.3% 8.8% 6.6% 6.1% France 15 $11,028 14.5% 8.2% 6.4% 8.0% Germany 10 $10,368 6.3% 5.0% 5.2% 5.1% UK² 8 $21,165 6.3% 14.6% 9.0% 9.1% Latin America 11 $10,870 16.2% 4.4% 4.3% 22.2% North America 82 $12,780 13.5% 10.4% 9.7% 6.0% US 76 $13,200 14.2% 10.7% 9.8% 5.7% Top 250 250 $12,472 7.0% 6.5% 6.0% 6.0% Source: Published company data * Sales-weighted, currency-adjusted composite growth rates ** Sales-weighted composites *** Compound annual growth rate ¹ Excludes Japan; includes China/Hong Kong ² Includes Unilever, a dual-listed company consisting of Unilever PLC, based in London, and Unilever N.V., based in Rotterdam, Netherlands. The companies operate as a single business. Global Powers of Consumer Products 2013 23
  26. 26. Excluding Japan, the Asia/Pacific region produced above average growth of 9.9 percent in 2011. From 2006-2011, sales increased at an even faster 11.6 percent pace for the other Asia/Pacific companies. For those based in mainland China and Hong Kong (17 of the region’s 34 non-Japanese companies), sales rose 23 percent in 2011 (16.8 percent on a five- year compound annual basis). In 2011, North American consumer products companies continued the rebound in sales and profits that began in 2010, posting back-to-back years of double-digit sales growth along with double-digit net profit margins. Composite sales grew 13.5 percent, building on 2010’s 10.9 percent increase. North America outperformed the other regions on the bottom line, where a 10.4 percent composite net profit margin set the bar high. On a composite basis, the 65 Top 250 European companies experienced below-average growth of 4.3 percent in 2011 compared with the Top 250 as a whole. However, the region posted above-average profitability with a composite net profit margin of 8.8 percent. Nevertheless, both top-line and bottom- line performance were down from 2010 levels when sales rose 7.0 percent and the region recorded a composite net profit margin of 11.7 percent. The region’s French companies enjoyed another year of strong sales growth in 2011: 14.5 percent on top of a 15.2 percent increase in 2010, once again outpacing their German and British counterparts. Latin America’s growth streak continued in 2011. Although cooling slightly from 2010’s industry- leading pace, the region’s 11 Top 250 companies generated a composite 16.2 percent growth rate in sales. Latin American companies have sustained their rapid growth over many years, boasting a five-year compound annual growth rate of 22.2 percent – by far the highest of any region. However, profitability continued to lag, with a composite net profit margin of 4.4 percent versus 6.5 percent for the Top 250 as a whole. The three companies comprising the Africa/Middle East region in 2011 all enjoyed double-digit growth resulting in the highest regional sales growth, 23.5 percent. Share of Top 250 companies by country/region, 2011 1.2% 13.6% 22.0% 6.0% 4.0% 3.2% 12.8% 4.4% 2.4% 30.4% Africa/ME GermanyOther Asia/Pac UK Japan Latin AmericaOther Europe US France Canada Share of Top 250 sales by country/region, 2011 0.5% 14.6% 20.0% 5.3% 3.3%5.4% 13.4% 3.8% 1.4% 32.2% Africa/ME GermanyOther Asia/Pac UK Japan Latin AmericaOther Europe US France Canada 24
  27. 27. Top consumer products companies by region Among Europe’s top 10 consumer product companies, Nestlé maintained its first place ranking in 2011 despite a drop in sales due to an accounting change (see page 22). The company has been the top-ranked European consumer products manufacturer since well before Deloitte began tracking the industry’s Top 250 Global Powers in 2006. The most significant change in the region’s top 10 ranking in 2011 was the removal of Philips Electronics from the Top 250. Philips was removed because it no longer derives the majority of its revenue from the sale of consumer products, focusing instead on the health care industry. Its departure left room at the bottom for Heineken to join Europe’s top 10 for first time in 2011. Other changes in Europe’s leader board involve changes in the ranking order: Michelin surpassed L’Oreal in 2011, and Danone, which joined the region’s top 10 in 2009, rose from tenth place to seventh. SABMiller, among the top 10 in 2006 and 2007, was knocked off the list by AB InBev in 2008, following InBev’s acquisition of Anheuser-Busch. The other companies on the 2011 list—Unilever, Nokia, BAT, and Imperial Tobacco—have been among Europe’s top 10 consumer products companies since at least 2006, when the first Global Powers report was published. In North America, PG, the heretofore undisputed consumer products leader in the region, was unseated by Apple, which took over the top spot after years of hyper growth including a 66 percent jump in sales in fiscal 2011. The only other change in the region’s top 10 in 2011 occurred at the bottom of the list where strong sales propelled Goodyear into tenth place ahead of Canada’s Research in Motion, maker of the BlackBerry smartphone (and now doing business under the BlackBerry name). In 2011, BlackBerry suffered its first ever sales decline following years of heady growth, despite continued rapid growth in the smartphone industry overall. In recent years, the company’s proprietary operating system has been losing market share to Apple’s iPhone and phones using the Android operating system—especially in the U.S. market. Top 10 European consumer products companies, 2011 Company name Europe rank Top 250 rank Product sector Country 2011 net sales (US$mil) 2011 net sales growth Nestlé 1 4 Food, Drink Tobacco Switzerland 94,704 -10.1% Unilever 2 8 Personal Household Products Netherlands and United Kingdom 64,721 5.0% Nokia 3 10 Electronic Products Finland 53,846 -8.9% Anheuser- Busch InBev 4 13 Food, Drink Tobacco Belgium 39,046 7.6% Michelin 5 22 Tires France 28,858 15.8% L’Oréal 6 23 Personal Household Products France 28,335 4.3% Danone 7 24 Food, Drink Tobacco France 26,907 13.6% British American Tobacco 8 25 Food, Drink Tobacco United Kingdom 24,706 3.5% Imperial Tobacco Group 9 26 Food, Drink Tobacco United Kingdom 24,398 1.1% Heineken 10 28 Food, Drink Tobacco Netherlands 23,850 6.1%               Top 10 North American consumer products companies, 2011 Company name North America rank Top 250 rank Product sector Country 2011 net sales (US$mil) 2011 net sales growth Apple 1 2 Electronic Products United States 108,249 66.0% Procter Gamble 2 5 Personal Household Products United States 83,680 1.4% PepsiCo 3 7 Food, Drink Tobacco United States 66,504 15.0% Kraft Foods (now Mondelēz) 4 9 Food, Drink Tobacco United States 54,365 10.5% Coca-Cola Company 5 12 Food, Drink Tobacco United States 46,542 32.5% Mars 6 16 Food, Drink Tobacco United States 33,000e 10.0% Tyson Foods 7 18 Food, Drink Tobacco United States 32,266 13.5% Philip Morris International 8 20 Food, Drink Tobacco United States 31,097 14.3% NIKE 9 27 Fashion Goods United States 24,128 15.7% Goodyear 10 30 Tires United States 22,767 20.9% Source: Published company data * Unable to determine if company’s reported sales exclude excise taxes Global Powers of Consumer Products 2013 25
  28. 28. Fourth-ranked Kraft Foods, Inc. (now Mondelēz International) will not likely maintain its position in 2012 after the spinoff of the North American grocery business (now known as Kraft Foods Group). However, it will remain somewhere in the middle of the top 10 group. PepsiCo, Mars, and Tyson Foods continue to place among the region’s 10 largest companies. There have been two other significant changes to the North American leader board over the last few years. Philip Morris International joined the region’s top 10 in 2008, when it was spun off by Altria Group, replacing its former parent company on the list. In 2010, NIKE joined the North American top 10, replacing Coca-Cola Enterprises (CCE), which dropped from number 24 in the overall Top 250 ranking in 2009 to number 106 one year later. CCE sold its North American operations to The Coca- Cola Company (TCCC) in 2010 and acquired TCCC’s bottling operations in Norway and Sweden. Electronics companies dominate the Asia/Pacific top 10. Samsung remained the region’s undisputed leader in 2011, widening its lead over Japanese rival Panasonic. Two more electronics companies, Sony and LG, remained third and fourth in the regional ranking. Sales declined sharply for Sharp, another Japanese electronics company, dropping the company from fifth place to seventh, behind tire maker Bridgestone and Japan Tobacco. Strong growth boosted Lenovo into the Asia/Pacific top 10 in 2010, and another good year in 2011 kept it there. The Hong Kong-based PC maker displaced another leading PC manufacturer, Taiwan’s Acer. China’s Haier Group, the world’s largest appliance manufacturer, moved up one spot to ninth place in 2011. Japanese beer maker Kirin, number nine in 2010, fell just out of the top 10 following a decline in sales and was replaced by another Japanese beverage maker, Suntory Holdings in 2011. In 2011, Latin America was represented by 11 Top 250 companies, up from just six in 2006 when the first Global Powers report was published. Brazil’s JBS has been the region’s largest consumer products company—and the world’s largest beef producer— since 2008, following its 2007 acquisition of U.S.- based Swift Foods. Top 10 Asia/Pacific consumer products companies, 2011 Company name Asia/Pac rank Top 250 rank Product sector Country 2011 net sales (US$mil) 2011 net sales growth Samsung Electronics 1 1 Electronic Products South Korea 150,152 6.7% Panasonic 2 3 Electronic Products Japan 99,412 -9.7% Sony 3 6 Electronic Products Japan 70,022 -12.3% LG Electronics 4 11 Electronic Products South Korea 49,373 -2.7% Bridgestone 5 14 Tires Japan 37,986 5.7% Japan Tobacco 6 17 Food, Drink Tobacco Japan 32,272 2.5% Sharp 7 19 Electronic Products Japan 31,116 -18.7% Lenovo Group 8 21 Electronic Products Hong Kong 29,574 37.0% Haier Group 9 29 Home Furnishings Equipment China 23,388 11.2% Suntory Holdings 10 31 Food, Drink Tobacco Japan 22,643 3.5%               Top 10 Latin American consumer products companies, 2011 Company name Latin America rank Top 250 rank Product sector Country 2011 net sales (US$mil) 2011 net sales growth JBS 1 15 Food, Drink Tobacco Brazil 37,120 12.2% FEMSA 2 45 Food, Drink Tobacco Mexico 16,321 19.9% BRF – Brasil Foods 3 48 Food, Drink Tobacco Brazil 15,441 13.3% Marfrig Alimentos 4 61 Food, Drink Tobacco Brazil 13,146 37.8% Grupo Bimbo 5 82 Food, Drink Tobacco Mexico 10,811 14.1% Grupo Modelo 6 114 Food, Drink Tobacco Mexico 6,796* 8.0% Bacardi 7 158 Food, Drink Tobacco Bermuda 5,000e 0.0% GRUMA 8 171 Food, Drink Tobacco Mexico 4,661 23.7% Arca Continental 9 210 Food, Drink Tobacco Mexico 3,622 65.5% Natura Cosméticos 10 230 Personal Household Products Brazil 3,359 8.9% Source: Published company data * Unable to determine if company’s reported sales exclude excise taxes 26
  29. 29. As a result, JBS overtook FEMSA, which became the region’s second-largest consumer products company. In 2009, the U.S. arm of JBS bought a majority stake in Pilgrim’s Pride, helping to cement JBS’s top ranking. BRF—Brasil Foods, which ranked third in 2011, was known as Perdigão prior to 2009. In August 2009, Sadia, another Brazilian meat processor, became a wholly owned subsidiary of Perdigão, and the company changed its name to BRF—Brasil Foods. All but one of Latin America’s top 10 companies operate as either food processors or beverage makers. Years of double-digit sales growth finally moved Brazilian cosmetic and fragrance company Natura Cosméticos—the exception—into the Top 250 in 2010 and into tenth place in the region. Ninth-ranked Arca Continental was formed by the 2011 merger of Mexico’s Embotelladoras Arca and Grupo Continental. It is the second-largest bottler of Coca-Cola products in Latin America (behind Coca- Cola FEMSA). The merger boosted the combined company into the Top 250 for the first time in 2011. As a result of Arca’s strong growth, Controladora Mabe, an appliance maker jointly owned by a group of Mexican investors and GE, now ranks last among the region’s 11 Top 250 companies. Africa/Middle East is the smallest region in terms of both the number of companies among the Top 250 and their average size. In 2011, the region was represented by only three companies. The largest is Savola Group, a multinational food group based in Saudi Arabia. Arcelik, a Turkish appliance manufacturer, and Vestel, a Turkish electronics company, complete the list. Other former Top 250 companies from the region—including Turkish beverage group Anadolu Efes and South African food processor Tiger Brands—were not large enough to qualify in 2011. Top Africa/Middle East consumer products companies, 2011 Company name Africa/ ME rank Top 250 rank Product sector Country 2011 net sales (US$mil) 2011 net sales growth Savola Group 1 115 Food, Drink Tobacco Saudi Arabia 6,721 19.8% Arçelik 2 156 Home Furnishings Equipment Turkey 5,056 21.6% Vestel Elektronik 3 181 Electronic Products Turkey 4,181 31.9% Source: Published company data * Unable to determine if company’s reported sales exclude excise taxes Global Powers of Consumer Products 2013 27
  30. 30. Global Powers of the Consumer Products Industry product sector analysis For analytical purposes, the Top 250 companies have been organized into eight major product sectors: • Electronic products • Fashion goods • Food, drink, and tobacco • Home furnishings and equipment • Home improvement products • Leisure goods • Personal and household products • Tires Fashion goods continue as industry bright spot The fashion goods sector continued to be a bright spot in the consumer products industry in 2011. At 13.6 percent, the sector posted the strongest composite sales growth for the second year in a row—far outpacing its five-year compound annual growth rate of 6.3 percent. The fashion group also remained one of the most profitable with a composite net profit margin of 8.0 percent. Sales growth decelerated to 3.9 percent for manufacturers of personal and household products, which was also one of the slowest- growing sectors in 2010. Nevertheless, the group maintained a high level of profitability, outperforming all other product sectors on the bottom line with a healthy 9.6 percent composite net profit margin. For the second year in a row, the food, drink, and tobacco sector saw its share of the Top 250 decline. While still by far the largest product group, the number of companies dropped to 137 in 2011 from 140 in 2010 and 143 in 2009, with a corresponding drop in its share of Top 250 sales. Nevertheless, the group turned in a solid performance, posting 8.6 percent composite sales growth and an 8.3 percent composite net profit margin. Within the food, drink, and tobacco sector, tobacco companies saw a modest pick-up in sales growth to 4.9 percent from 2010’s slow 3.3 percent pace. However, this subsector suffered declining sales over the 2006-2011 period. With a compound annual growth rate of -1.9 percent, tobacco companies were the only product group to experience negative growth over the five-year period. Performance by product sector, 2011 Number of companies Average size (US$mil) 2011 net sales growth* 2011 net profit margin** 2011 return on assets** 2006- 2011 net sales CAGR*** Electronic products 23 $31,152 3.6% 2.6% 2.6% 6.3% Fashion goods 20 $7,015 13.6% 8.0% 8.3% 6.3% Food, drink tobacco 137 $10,894 8.6% 8.3% 7.2% 7.3% Home furnishings equipment 13 $9,770 9.9% 3.8% 5.7% 5.6% Home improvement products 10 $6,546 6.8% 1.3% 1.1% 0.3% Leisure goods 10 $4,890 -3.4% 7.3% 5.3% 2.1% Personal household products 26 $15,158 3.9% 9.6% 8.0% 4.0% Tires 11 $12,126 13.0% 4.4% 4.8% 4.0% Top 250 250 $12,472 7.0% 6.5% 6.0% 6.0% Source: Published company data * Sales-weighted, currency-adjusted composite growth rates ** Sales-weighted composites *** Compound annual growth rate Share of Top 250 companies by product sector, 2011 4.4% 9.2% 8.0% 54.8% 5.2% 4.0% 4.0% 10.4% Electronic products Home furnishings equipt. Personal hshld. products Fashion goods Home improvement products Tires Food, drink tobacco Leisure goods Share of Top 250 sales by product sector, 2011 Electronic products Home furnishings equipt. Personal hshld. products Fashion goods Home improvement products Tires Food, drink tobacco Leisure goods 4.3% 23.0% 4.5% 47.9% 4.1% 2.1% 1.6% 12.6% 28
  31. 31. Food, drink tobacco: performance by subsector, 2011 Number of companies Average size (US$mil) FY11 net sales growth* FY11 net profit margin** FY11 return on assets** 2006-2011 net sales CAGR*** Beverages 31 $11,371 10.9% 12.9% 7.8% 9.3% Food processing 97 $10,196 8.3% 4.8% 5.3% 8.4% Tobacco 9 $16,770 4.9% 18.6% 11.7% -1.9% Food, drink tobacco 137 $10,894 8.6% 8.3% 7.2% 7.3% Yet, the industry continues to be highly profitable. Over the years, industry consolidation has resulted in tobacco companies becoming very large in size, second only to consumer electronics manufacturers. The nine Top 250 companies in the tobacco subsector averaged $16.8 billion in 2011 sales volume, one-third larger than the average Top 250 company. The beverage subsector performed much better on the top line in 2011 compared with the prior year, more than doubling its pace of growth to 10.9 percent from 4.7 percent in 2010. Profitability remained strong—the makers of alcoholic and non- alcoholic drinks generated a composite net profit margin of 12.9 percent. Sales advanced solidly for the food processing companies again in 2011, but the subsector’s unusually strong bottom line in 2010 was not sustained. The composite net profit margin dropped to 4.8 percent in 2011 from 8.7 percent the prior year. Growth and profitability both declined in 2011 for manufacturers of consumer electronic products. The sector, which had rebounded in 2010 with composite sales growth of 9.9 percent and a composite net profit margin of 5.3 percent, saw sales growth slow significantly in 2011 to 3.6 percent and profitability drop by half to 2.6 percent. The performance decline is largely attributable to Japan, home to a third of the companies in this group, as the country struggled to cope with the massive damage to infrastructure and supply chain caused by the earthquake. Sales fell for seven of the eight Japanese electronics manufacturers in 2011, and four operated at a loss. Top 250 manufacturers of home furnishings and equipment have enjoyed a significant recovery in sales since 2009, when composite sales dropped 3.2 percent. Back-to-back growth in (or near) double- digits in 2010 and 2011 boosted the sector’s five-year compound annual growth rate to 5.6 percent. As is typical for this industry, profitability remained fairly modest. The group, comprised of 12 appliance manufacturers and one furniture maker, posted a composite net profit margin of 3.8 percent in 2011. Source: Published company data * Sales-weighted, currency-adjusted composite growth rates ** Sales-weighted composites *** Compound annual growth rate Sales cooled for the home improvement sector in 2011. At 6.8 percent, growth was down by almost half from its 12.3 percent pace in 2010. However, 2011 still compares very favorably to the sector’s longer-term performance. On a compound annual basis since 2006, sales for manufacturers of home improvement products among the Top 250 grew just 0.3 percent per year. With a composite net profit margin of 1.3 percent, this sector remained the least profitable. Of the eight major product sectors analyzed, the leisure goods group was once again the only one to post declining composite sales in 2011. And once again the group result was driven largely by Nintendo, the Japanese gaming giant that has suffered double-digit sales declines since 2009. The tire sector continued to rally—a comeback that began in 2010 along with the rebound in auto sales. In 2011, the group experienced 13 percent sales growth on top of 2010’s 14.1 percent increase. All but one of the 11 Top 250 tire companies were profitable, resulting in a composite net profit margin of 4.4 percent. Global Powers of Consumer Products 2013 29

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